2025 OCR AS Level Business H031/01 The Local Business Environment exam paper with Official Mark Scheme and verified answers for complete exam preparation.

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2025 OCR AS Level Business
H031/01 The local business environment
Verified Question paper with Marking Scheme Attached



Oxford Cambridge and RSA

Friday 16 May 2025 – Morning
AS Level Business
H031/01 The local business environment
Time allowed: 1 hour 30 minutes

You must have:
• the Resource Booklet
You can use:
• a calculator




Please write clearly in black ink. Do not write in the barcodes.

Centre number Candidate number


First name(s)

Last name



INSTRUCTIONS
• Use black ink.
• Write your answer to each question in the space provided. You can use extra paper if you
need to, but you must clearly show your candidate number, the centre number and the
question number(s).
• Answer all the questions.
• Use the Resource Booklet to answer the questions in Section B.

INFORMATION
• The total mark for this paper is 60.
• The marks for each question are shown in brackets [ ].
• Quality of extended response will be assessed in questions marked with an asterisk (*).
• This document has 16 pages.

ADVICE
• Read each question carefully before you start your answer.


© OCR 2025 [601/4674/6] OCR is an exempt Charity
DC (SL) 352175/2 Turn over


S Level question
2025 OCRpaper,
2025
AS Level
including
OCR Business
AS the
Level
complete
H03101
Business
Question
The
H03101
localPaper
business
The local
with environment
business
Exam-Ready
environment
Verified
ExaminerQuestion
Verified
Mark Scheme.
paper
Question
with
Covers
paper
Marking
with
all examinable
Scheme
MarkingAttached.pdf
Scheme
contentAttached.pdf
with Verified Answers

, Page 2 of 2025
442025
OCR
OCR
ASA/AS
LevelLevel
Business
| Question
H03101 Paper
The with
localExam-Ready
business2025
environment
Examiner
OCR A/AS
Verified
Mark
LevelScheme
Question
| Question
paper
Paper
with
with
Marking
Exam-Ready
SchemeExaminer
Attached.pdf
Mark Scheme



2
Section A

Put a tick (✓) in the box next to the one correct answer for each question.


1 Four stages of the product life cycle are:

(a) development, globalisation, maturity, decline

(b) development, growth, marketing, recession

(c) development, growth, maturity, decline

(d) diversification, growth, maturity, decline
[1]


2 A business has increased its output in relation to its inputs.

Which statement must be true?

(a) Capacity utilisation has increased

(b) Productivity has increased

(c) Profit levels have increased

(d) Workforce motivation has increased
[1]


3 Rix Ltd is an independent convenience store.

What is Rix Ltd an example of?

(a) A private sector organisation that manufactures goods

(b) A secondary organisation that operates nationally

(c) A tertiary organisation that serves its local market

(d) A third sector organisation that provides a service
[1]


4 What is a short-term source of finance suitable for an entrepreneur starting their first business?

(a) Retained profit

(b) Sale and leaseback

(c) Trade credit
© OCR 2025




S Level question
2025 OCRpaper,
2025
AS Level
including
OCR Business
AS the
Level
complete
H03101
Business
Question
The
H03101
localPaper
business
The local
with environment
business
Exam-Ready
environment
Verified
ExaminerQuestion
Verified
Mark Scheme.
paper
Question
with
Covers
paper
Marking
with
all examinable
Scheme
MarkingAttached.pdf
Scheme
contentAttached.pdf
with Verified Answers

, Page 3 of 2025
442025
OCR
OCR
ASA/AS
LevelLevel
Business
| Question
H03101 Paper
The with
localExam-Ready
business2025
environment
Examiner
OCR A/AS
Verified
Mark
LevelScheme
Question
| Question
paper
Paper
with
with
Marking
Exam-Ready
SchemeExaminer
Attached.pdf
Mark Scheme



3

(d) Venture capital
[1]




© OCR 2025 Turn over



S Level question
2025 OCRpaper,
2025
AS Level
including
OCR Business
AS the
Level
complete
H03101
Business
Question
The
H03101
localPaper
business
The local
with environment
business
Exam-Ready
environment
Verified
ExaminerQuestion
Verified
Mark Scheme.
paper
Question
with
Covers
paper
Marking
with
all examinable
Scheme
MarkingAttached.pdf
Scheme
contentAttached.pdf
with Verified Answers

, Page 4 of 2025
442025
OCR
OCR
ASA/AS
LevelLevel
Business
| Question
H03101 Paper
The with
localExam-Ready
business2025
environment
Examiner
OCR A/AS
Verified
Mark
LevelScheme
Question
| Question
paper
Paper
with
with
Marking
Exam-Ready
SchemeExaminer
Attached.pdf
Mark Scheme



4
5 A business has seven employees who each work 20 days a month. Last month, a total of 28 days
were lost due to illness.

What was the rate of absenteeism last month?

(a) 5%

(b) 20%

(c) 25%

(d) 40%
[1]


6 A bakery does not have a unique selling point (USP). In which section of the bakery’s SWOT analysis
should this be recorded?

(a) Opportunity

(b) Strength

(c) Threat

(d) Weakness
[1]


7 A business has added value to its products.

What is the most likely disadvantage for a customer of this?

(a) Higher prices

(b) Higher quality

(c) Limited availability

(d) Reduced functionality
[1]


8 What is a social factor that may affect a retailer?

(a) Advances in SMART technologies

(b) Fewer customers are using cash

(c) Government support for electric vehicles

(d) Increases in the cost of living

© OCR 2025




S Level question
2025 OCRpaper,
2025
AS Level
including
OCR Business
AS the
Level
complete
H03101
Business
Question
The
H03101
localPaper
business
The local
with environment
business
Exam-Ready
environment
Verified
ExaminerQuestion
Verified
Mark Scheme.
paper
Question
with
Covers
paper
Marking
with
all examinable
Scheme
MarkingAttached.pdf
Scheme
contentAttached.pdf
with Verified Answers