AQA_A Level Business Studies Paper 2_2020
Please write clearly in block capitals.
Centre Candidate
number number
Surname
Forename(s)
Candidate ure
signat
A-level
BUSINESS
Paper 2 Business 2
Monday 1 June 2020 Afternoon Time allowed: 2 hours
Materials For Examiner’s Use
For this paper you must have:
a calculator. Question Mark
1.1
Instructions 1.2
Use black ink or black ball-point pen. 1.3
Fill in the boxes at the top of this page.
1.4
Answer all questions.
You must answer the questions in the spaces provided. Do 2.1
not write outside the box around each page or on blank 2.2
pages.
2.3
Do all rough work in this answer book. Cross through any
work you do not want to be marked. 2.4
3.1
Information 3.2
The marks for questions are shown in brackets.
3.3
The maximum mark for this paper is 100.
3.4
TOTAL
*jun207132201* 7132/2
IB/G/Jun20/
E12
,*jun207132201* 7132/2
IB/G/Jun20/
E12
, 2
Do not
write
Answer all questions in the spaces box the
outside
provided.
0 1 Read the information below and then answer the questions that follow.
Drake Hotels PLC owns 20 budget hotels in the UK. Each one is located in a
different city. The industry is very competitive and Drake’s managers all
have an objective to help the business to be as efficient as possible.
Drake Hotels PLC’s operating profit for the financial year 2019–20 was
£18 million. Last month the company appointed a new Chief Executive,
Mary Myers, to increase the profitability of the business. Mary was
previously the Marketing Manager of an upmarket hotel chain.
Mary is already considering an investment proposal for a luxury hotel in
Oxford. This hotel would target overseas visitors who might want to visit the
city. Drake Hotels has found a suitable building but needs to invest to
develop it.
Appendix A Investment appraisal results for the proposed investment
into a new hotel in Oxford (based on net inflows for first
eight years).
Average rate of return 12% per
year Net Present Value £25
million
Source: Chief Executive
Appendix B Sensitivity analysis for the new Oxford hotel investment
proposal
Estimated
Two possible changes in the economy that might affect
probability of this
the investment appraisal results in Appendix A
change happening
The value of the pound against other currencies is 10%
higher than originally forecasted.
20%
The average GDP growth in overseas countries is 1.5%
higher than originally forecasted.
30%
Source: Chief Executive
Appendix C Selected financial data for Drake Hotels PLC
£ million as at
1 May 2020
Current assets 15
Current liabilities 18
Total equity 170
Non-current liabilities 280
*02
IB/G/
* Jun20/7132/2
Please write clearly in block capitals.
Centre Candidate
number number
Surname
Forename(s)
Candidate ure
signat
A-level
BUSINESS
Paper 2 Business 2
Monday 1 June 2020 Afternoon Time allowed: 2 hours
Materials For Examiner’s Use
For this paper you must have:
a calculator. Question Mark
1.1
Instructions 1.2
Use black ink or black ball-point pen. 1.3
Fill in the boxes at the top of this page.
1.4
Answer all questions.
You must answer the questions in the spaces provided. Do 2.1
not write outside the box around each page or on blank 2.2
pages.
2.3
Do all rough work in this answer book. Cross through any
work you do not want to be marked. 2.4
3.1
Information 3.2
The marks for questions are shown in brackets.
3.3
The maximum mark for this paper is 100.
3.4
TOTAL
*jun207132201* 7132/2
IB/G/Jun20/
E12
,*jun207132201* 7132/2
IB/G/Jun20/
E12
, 2
Do not
write
Answer all questions in the spaces box the
outside
provided.
0 1 Read the information below and then answer the questions that follow.
Drake Hotels PLC owns 20 budget hotels in the UK. Each one is located in a
different city. The industry is very competitive and Drake’s managers all
have an objective to help the business to be as efficient as possible.
Drake Hotels PLC’s operating profit for the financial year 2019–20 was
£18 million. Last month the company appointed a new Chief Executive,
Mary Myers, to increase the profitability of the business. Mary was
previously the Marketing Manager of an upmarket hotel chain.
Mary is already considering an investment proposal for a luxury hotel in
Oxford. This hotel would target overseas visitors who might want to visit the
city. Drake Hotels has found a suitable building but needs to invest to
develop it.
Appendix A Investment appraisal results for the proposed investment
into a new hotel in Oxford (based on net inflows for first
eight years).
Average rate of return 12% per
year Net Present Value £25
million
Source: Chief Executive
Appendix B Sensitivity analysis for the new Oxford hotel investment
proposal
Estimated
Two possible changes in the economy that might affect
probability of this
the investment appraisal results in Appendix A
change happening
The value of the pound against other currencies is 10%
higher than originally forecasted.
20%
The average GDP growth in overseas countries is 1.5%
higher than originally forecasted.
30%
Source: Chief Executive
Appendix C Selected financial data for Drake Hotels PLC
£ million as at
1 May 2020
Current assets 15
Current liabilities 18
Total equity 170
Non-current liabilities 280
*02
IB/G/
* Jun20/7132/2
