AQA AS LEVEL GCSE BUSINESS.

AQA AS LEVEL GCSE BUSINESS.For questions with four responses, only one answer per question is allowed. For each question completely fill in the circle alongside the appropriate answer. CORRECT METHOD WRONG METHODS If you want to change your answer you must cross out your original answer as shown. If you wish to return to an answer previously crossed out, ring the answer you now wish to select as shown. 0 1 . 1 Identify which of the following is a characteristic of a tall organisational structure. [1 mark] A Junior employees make more decisions. B There are few employees. C There are many levels of the hierarchy. D There will be a short chain of command. 0 1 . 2 Which of the following describes a situation when a profit must be made? [1 mark] A Revenue is equal to total costs. B Revenue is higher than fixed costs. C Total costs are higher than revenue. D Total costs are lower than revenue. 3 *03* Turn over ► IB/G/Jun20/8132/1 Do not write outside the box 0 1 . 3 Which of the following is an explanation of opportunity cost? [1 mark] A Identifying business opportunities and bringing together resources to meet them B Seeing a problem with the way things are done and thinking of a better way of doing it C Seeing a gap in the market and calculating the cost of entering the market D The cost of making one choice concerning the use of limited resources at the expense of an alternative choice 0 1 . 4 Which of the following would be correct if a business decreases its span of control? [1 mark] A The junior employees would have more independence and make more decisions. B There will be a passing down of authority to more junior employees. C There are less levels of hierarchy in a business’s organisational structure. D There would be a smaller number of people for whom a manager is directly responsible. 0 1 . 5 Which of the following describes the process of collecting and interpreting information about a particular job? [1 mark] A Curriculum Vitae B Job advert C Job analysis D Person specification Question 1 continues on the next page 4 *04* IB/G/Jun20/8132/1 Do not write outside the box 0 1 . 6 Which type of training has the benefit of bringing new ideas into the business? [1 mark] A Induction B Mentoring C Off-the-job D On-the-job 0 1 . 7 Identify two consequences for a business of producing poor quality goods. [2 marks] 1 2 0 1 . 8 Identify and explain an objective a business might set. [2 marks] 0 1 . 9 Explain one way a rise in unemployment might affect a business. [2 marks] 5 *05* Turn over ► IB/G/Jun20/8132/1 Do not write outside the box 0 1 . 10 Explain one disadvantage of flow production. [2 marks] 0 1 . 11 Explain one way health and safety law might affect a business. [2 marks] 0 1 . 12 Explain two benefits to a business of having an effective recruitment and selection process. [4 marks] Benefit 1 Benefit 2 Turn over for Section B 20 6 *06* IB/G/Jun20/8132/1 Do not write outside the Section B box Answer all questions in the spaces provided. 0 2 Item A: Adventures John is a sole trader who owns a business called Adventures. The business was set up seven years ago to sell activity holidays in the UK. John has been a keen water-sports enthusiast for many years. He had been unhappy when working for a large insurance company. He therefore decided to set up Adventures. Adventures offers a range of activities such as windsurfing, canoeing and surfing. One holiday that Adventures sells is a weekend course where people can learn to windsurf. The business employs an instructor and books the hotel. This is then sold as a package holiday to customers. Table 1: Cost information for a windsurfing weekend Number of participants Fixed costs Total variable costs 10 £1500 £2600 John strongly believes that a successful business should be a sustainable business. Adventures will only book hotels that take responsibility for their impact on the environment by recycling and using renewable energy. This means Adventures often pay a premium price for accommodation. Many of John’s customers go skiing during the winter months and he would like to expand and sell ski holidays in Italy. John has never skied himself so he has asked his friend Lucas for some advice. Lucas has never run his own business before but has lived and worked in an Italian ski resort called Folgaria for several years. He is familiar with the local hotels there and knows several ski instructors. Lucas does not believe that the business should pay a premium price for hotels but is keen to invest in the business. Lucas would like to form a partnership in which decisions are shared equally with John. 0 2 . 1 Define sustainability. [2 marks] 7 *07* Turn over ► IB/G/Jun20/8132/1 Do not write outside the box 0 2 . 2 Using Item A, give one reason why John became an entrepreneur. [1 mark] 0 2 . 3 Using Table 1, calculate the average unit cost for 24 participants in the windsurfing weekend. State the average unit cost formula used and show your workings. [5 marks] Formula Workings Answer £ Question 2 continues on the next page 8 *08* IB/G/Jun20/8132/1 Do not write outside the box 0 2 . 4 John is considering forming a partnership with his friend Lucas. Although the extra investment his friend will contribute to the business is a benefit, John does not want to make his decision based on this. Recommend whether John should form a partnership with Lucas. Give reasons for your recommendation. [9 marks] Extra space 9 *09* Turn over ► IB/G/Jun20/8132/1 Do not write outside the box Question 2 continues on the next page 10 *10* IB/G/Jun20/8132/1 Do not write outside the box Item B: Adventures Adventures currently employs eight staff in the UK, who are all keen sporting enthusiasts. Adventures’ employees are expected to sell holidays and take payments but also deal with all customer enquiries such as advice on local facilities. Sales have fallen recently and staff absenteeism has increased. Other rival businesses have increased their salaries. As John is unable to offer a competitive salary, employees have been asking for extra benefits. Discounts on holidays, commission or profit sharing are being used by different competitors. John is drawing up a business plan to expand into ski holidays in the Italian resort of Folgaria. The business plan outlines the objectives of the business. Within three years, John aims to double profits and would like to have a 30% market share of ski holidays to Folgaria. To achieve this, the business would need to sell on average 2000 ski holidays each winter. Adventures will increase its number of employees to 10 to sell ski holidays, so the company is moving to a new office with more space. The new employees enjoy skiing; one of them will live in the ski resort for the winter and support customers when on holiday.