AS LEVEL BUSSINESS H031/01 THE
LOCAL BUSSINESS ENVIRONMENT
ACTUAL 2025 PAPER MERGED WITH
MARK SCHEME
vincent marekia
[COMPANY NAME] [Company address]
, 1
Oxford Cambridge and RSA
*1877848738*
Friday 16 May 2025 – Morning
• 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] DC (SL) 352175/2
OCR is an exempt Charity
Turn over
© OCR 2025
, 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
(d) Venture capital
© OCR 2025 Turn over
, 3
[1] 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
[1] 9 What is an example of good customer service for a school?
(a) A positive report in the local newspaper
(b) Achieving better than expected exam results
© OCR 2025
LOCAL BUSSINESS ENVIRONMENT
ACTUAL 2025 PAPER MERGED WITH
MARK SCHEME
vincent marekia
[COMPANY NAME] [Company address]
, 1
Oxford Cambridge and RSA
*1877848738*
Friday 16 May 2025 – Morning
• 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] DC (SL) 352175/2
OCR is an exempt Charity
Turn over
© OCR 2025
, 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
(d) Venture capital
© OCR 2025 Turn over
, 3
[1] 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
[1] 9 What is an example of good customer service for a school?
(a) A positive report in the local newspaper
(b) Achieving better than expected exam results
© OCR 2025
