Oxford Cambridge and RSA
Thursday 7 October 2021 – Morning
A Level Business
H431/01 Operating in a local business environment
Time allowed: 2 hours
You must have:
* 8 9 6 0 4 7 9 2 9 8 *
• the Resource Booklet
You can use:
• a calculator
* H 4 3 1 0 1 *
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 numbers.
• Use the Resource Booklet to answer the questions in Section B.
• Answer all the questions.
INFORMATION
• The total mark for this paper is 80.
• 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 20 pages.
ADVICE
• Read each question carefully before you start your answer.
© OCR 2021 [601/4675/8] OCR is an exempt Charity
DC (RW/SG) 300227/3 Turn over
, 2
Section A
Answer all the questions.
Put a tick (✓) in the box next to the one correct answer for each question.
1 A job description should contain:
(a) a deadline for applications
(b) the characteristics of the successful applicant
(c) the names of two referees
(d) the responsibilities of the role
[1]
2 Which of the following sources of finance is only available to a public limited company?
(a) A share issue
(b) Debentures
(c) Debt factoring
(d) Sale and leaseback
[1]
3 HJ Construction plc builds houses which are then rented out by local councils.
HJ Construction plc is an example of a:
(a) secondary sector company which operates in the private sector
(b) secondary sector company which operates in the public sector
(c) tertiary sector company which operates in the private sector
(d) tertiary sector company which operates in the public sector
[1]
© OCR 2021
, 3
4 A manufacturer makes meat-based and vegetarian soups. The market has recently experienced
an increase in the supply of meat-based soups and an increase in demand for vegetarian soups.
How should the manufacturer respond to these changes in market forces?
(a) Adjust production levels in favour of vegetarian soups
(b) Decrease the production of both types of soup
(c) Increase the price of meat-based soups
(d) Increase the production of meat-based soups
[1]
5 Which of the following options only includes lean production methods?
(a) ATR, Just in time and Kaizen
(b) Cell production, DAGMAR and Kanban
(c) Ergonomics, Jidoka and Porter’s Five Forces
(d) Jidoka, Kaizen and Kanban
[1]
6 A retailer wishes to open a new store at a cost of £11 million. Forecast net return figures, together
with 15% discount factors, are shown in the table below.
Forecast net returns
Year 15% discount factor
(£ million)
0 (11.0) 1.00
1 2.5 0.87
2 3.5 0.76
3 4.5 0.66
4 5.5 0.57
5 6.5 0.50
Based on the forecast net returns and a discount factor of 15%, the net present value (NPV) of
this investment is approximately:
(a) £3.2 million
(b) £11.5 million
(c) £14.2 million
(d) £64.6 million
[1]
© OCR 2021 Turn over
Thursday 7 October 2021 – Morning
A Level Business
H431/01 Operating in a local business environment
Time allowed: 2 hours
You must have:
* 8 9 6 0 4 7 9 2 9 8 *
• the Resource Booklet
You can use:
• a calculator
* H 4 3 1 0 1 *
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 numbers.
• Use the Resource Booklet to answer the questions in Section B.
• Answer all the questions.
INFORMATION
• The total mark for this paper is 80.
• 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 20 pages.
ADVICE
• Read each question carefully before you start your answer.
© OCR 2021 [601/4675/8] OCR is an exempt Charity
DC (RW/SG) 300227/3 Turn over
, 2
Section A
Answer all the questions.
Put a tick (✓) in the box next to the one correct answer for each question.
1 A job description should contain:
(a) a deadline for applications
(b) the characteristics of the successful applicant
(c) the names of two referees
(d) the responsibilities of the role
[1]
2 Which of the following sources of finance is only available to a public limited company?
(a) A share issue
(b) Debentures
(c) Debt factoring
(d) Sale and leaseback
[1]
3 HJ Construction plc builds houses which are then rented out by local councils.
HJ Construction plc is an example of a:
(a) secondary sector company which operates in the private sector
(b) secondary sector company which operates in the public sector
(c) tertiary sector company which operates in the private sector
(d) tertiary sector company which operates in the public sector
[1]
© OCR 2021
, 3
4 A manufacturer makes meat-based and vegetarian soups. The market has recently experienced
an increase in the supply of meat-based soups and an increase in demand for vegetarian soups.
How should the manufacturer respond to these changes in market forces?
(a) Adjust production levels in favour of vegetarian soups
(b) Decrease the production of both types of soup
(c) Increase the price of meat-based soups
(d) Increase the production of meat-based soups
[1]
5 Which of the following options only includes lean production methods?
(a) ATR, Just in time and Kaizen
(b) Cell production, DAGMAR and Kanban
(c) Ergonomics, Jidoka and Porter’s Five Forces
(d) Jidoka, Kaizen and Kanban
[1]
6 A retailer wishes to open a new store at a cost of £11 million. Forecast net return figures, together
with 15% discount factors, are shown in the table below.
Forecast net returns
Year 15% discount factor
(£ million)
0 (11.0) 1.00
1 2.5 0.87
2 3.5 0.76
3 4.5 0.66
4 5.5 0.57
5 6.5 0.50
Based on the forecast net returns and a discount factor of 15%, the net present value (NPV) of
this investment is approximately:
(a) £3.2 million
(b) £11.5 million
(c) £14.2 million
(d) £64.6 million
[1]
© OCR 2021 Turn over
