AQA A Level

44 Pages·2016·1.91 MB·English

PRACTICE EXAM PAPER
AQA A Level
AS Business
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Question Paper

Business 1
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Practice Paper (B)
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Page 2 Business 1 Practice Paper (B)
AS Business
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BUSINESS 1 PRACTICE PAPER (B)
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Materials
For this paper you must have:
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N a calculator.
Instructions
N Use black ink or black ball-point pen.
N Fill in the boxes at the bottom of this page.
N Answer all questions. A
N You must answer the questions in the spaces provided.
Do not write outside the box around in eachor on blank pages.
N Do all rough work in this answer book.
Cross through any work Syou do not want to be marked.
Information
N The marks for questions are shown in brackets.
N The maximum mark for this paper is 80.
Please write clearly, in block capitals, to allow character computer recognition.
Centre number:
Candidate number:

Surname:
Forename(s):
Candidate signature:
Business 1 Practice Paper (B) Page 3
Only one answer per question is allowed.
For each answer completely fill in the circle alongside the appropriate answer.
Correct method: Wrong methods: 7 3
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.
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Section A
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Answer ALL questions in this section
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01 Extrapolation can be defined as:
A. A statistical technique used to establish the strength of a
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relationship between two sets of data
B. The introduction of an extra product to a certain
geographical area
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C. Using the previous patterns of numerical data in order
to predict values in the future
D. Additional data not Sconsidered in the final sample size of research [1 mark]
02 AA market was worth £20million in 2014 and £22.5 million in 2015. Calculate the percentage market growth.
A. 11.1%
B. 12.5%
C. -11.1%
D. 112.5% [1 mark]
03 The formula for calculating break-even output is:
A. Total Costs/Contribution per unit
B. Fixed Costs/Contribution per unit
C. Fixed Costs/Total Contribution [1 mark]
Page 4 Business 1 Practice Paper (B)
04 Calculate the opening balance for March in the cash flow forecast below:
January (£) February (£) March (£)
cash inflows 1600 1700 1700
cash outflows 1800 1800 1600
net cash flow (£200) (£100)
opening Balance 600
closing Balance
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A. £900
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B. £500
C. £300
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D. £400 [1 mark]
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05 The current value of a company calculated by share price x number of outstanding shares is referred to as:
A. Return on investment
B. Market Capitalisation
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C. Market Size
D. Dividend [1 mark]
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06 Which of the following includes both government and employers in the employment relations process:
A. A campaign by trade unions to increase membership
B. The retail employers association releasing a media statement
C. Workers negotiating with management to introduce flexible working hours
D. The introduction of new occupational health & safety legislation [1 mark]
07 A staff suggestion scheme programme where staff are encouraged to regularly contribute ideas to management
is an example of:
A. Kaizen
B. Centralisation
C. Redeployment
D. Benchmarking [1 mark]
Business 1 Practice Paper (B) Page 5
08 Which stakeholder is likely to be most affected negatively by the following scenario: A country’s largest coffee
chain, Coffee Express, has managed to find a legal loophole to avoid paying corporation tax in the country.
Coffee Express are by far the largest, most profitable retail chain in the country.
A. Employees
B. Owners
C. Suppliers
D. Government E[1 mark]
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09 Which of the following isn’t one of Hackman & Oldham’s core job characteristics in the Job Design Model?
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A. High quality work performance
B. Skill variety
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C. Feedback from job
D. Task significance [1 mark]
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10 Which method of matching supply to demand gives firms least control over the quality of their output?
A. Use of part-time staff
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B. Producing to order
C. Use of temporary staff
D. Outsourcing [1 mark]
QUESTION 10 IS THE LAST QUESTION IN SECTION A.
Section B starts on the next page
Page 6 Business 1 Practice Paper (B)
Section B
Answer ALL questions in this section
11 Explain one benefit the management of a software manufacturing firm may experience by adopting a
‘subordinate centred leadership’ approach? [4 marks]
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12 The following data applies to a new business:
N Selling Price = £13.00
N Current level of mSonthly output = 3,100 units
N Variable Cost per unit = £7.50
N Monthly fixed costs = £11,300

Using the data above, calculate the monthly margin of safety for the firm if the variable cost per unit rises
to £8.20. [5 marks]
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Business 1 Practice Paper (B) Page 7
13 The following data applies to a small business.
2012 2013 2014
Average number of 320 332 356
workers employed
Average sick days per 2 5 5
worker
output 63,400 61,200 63,480
number of defective items 235 241 268
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number of staff leaving 35 42 41
the firm
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Calculate the labour turnover and labour productivity of the business for 2012. [6 marks]
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14 Analyse one drawback to a manufacturing firm with low market share using only external recruitment to replace
staff that have left the business. [5 marks]
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Section C
Answer ALL questions in this section
15 Center Parcs UK
Center Parcs came to the UK in July 1987 when it opened its first Village in Sherwood Forest, Nottinghamshire,
offering short break holidays on a year-round basis. More than 27 years later, the name Center Parcs has become
synonymous with the provision of an exceptional short break experience in a natural forest location. Center Parcs
provide a range of outstanding leisure facilities and more than 200 indoor and outdooEr activities, all set within a
protected and enhanced woodland environment. With recent trends showing an increase in family short breaks,
particularly in the UK, the Center Parcs concept is as relevant today than at any point in its 27 year history in the
UK market. The most recent customer satisfaction survey has shown that 96% of respondents ranked their stay at
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Center Parcs either ‘excellent’ or ‘good’.
Against a backdrop of challenging yet improving economic conditPions (unemployment still relatively high and
economic growth still at a low rate), CEO Martin Dalby believes that Center Parcs business went from strength to
strength; average occupancy was 97.2%, an exceptional level for the leisure and hospitality sector in his opinion.
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Due to school holidays (such as half terms, Easter and Summer Holidays) being the busiest periods for Center
Parcs, the business look to compete effectively on price and seek to increase revenue through the additional
activities which each location provide, such as archery, bike hire and kids clubs. The operating profit margin on
average for the holiday industry is 5.7%. The uncertainty of British weather conditions and the affordability of all
inclusive package holidays in the sun destinations of Europe still remain one of the biggest threats to Center Parcs
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year on year.
Extracts from the Annual Review
Year S 2013/14 2012/13
occupancy % 97.2 97.2
Percentage of Bookings made online 81 79
sales revenue (£m) 314.6 303.5
employee turnover % 25 23
operating Profit (£m) 20.6 18.6
estimated Price elasticity of Demand 2.3 1.9
Constant refurbishment and redecoration of the facilities (most wood-based) is undertaken each year. To maintain
their high standards, Center Parcs have continued their capital investment programme in the existing Villages
investing, in total, £39.6 million. In addition, they invested £174.3 million in the construction of the new Woburn
Forest location (taking the total to approximately £250 million).
In order to increase sales during off-peak periods, Center Parcs launched an advertisement campaign promoting
midweek breaks for £279. These advertisements showed parents and school aged children with small print stating
the offer “excludes school holidays”. Complaints were received due to the fact the advertisement were seen to be
“irresponsibly” encouraging parents to take their children out of school. The Advertising Standards Agency (ASA),
a Government Organisation, requested that the advertisement be removed from TV.
Business 1 Practice Paper (B) Page 9
15. 1 Analyse the benefits to Center Parcs of achieving consistently high levels of capacity utilisation in their UK
locations. [9 marks]
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