Cambridge AS and A Level Business: Paper 1 (Business Concepts) Practice Set 1

Cambridge AS and A level Business Question Practice Paper 1 Set 1



Section A

Answer all questions.

1 (a) Define the term job description. [2]

(b) Explain one benefit to a business of using performance-related pay. [3]



2 (a) Define the term market segmentation. [2]

(b) Explain one advantage to a business of using batch production. [3]



3 (a) Define the term contribution (per unit). [2]

(b) Explain one reason why a business might prepare a cash flow forecast. [3]



4 Analyse one reason why a business might choose to use a democratic leadership style. [5]




Section B

Answer one question only.

EITHER

5 (a) Analyse two advantages to a business of using market research before launching a
new product. [8]

(b) ‘Price is the most important element of the marketing mix for a small restaurant operating
in a highly competitive market.’

Evaluate this view. [12]

OR

6 (a) Analyse two benefits to a business of using appraisal systems for employees. [8]

(b) Evaluate whether increasing capacity utilisation is the best way for a manufacturing
business to improve profitability. [12]