GCSE
New Business
H431/02: The UK business environment
A Level
*1885163809*
• 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 16 pages.
ADVICE
• Read each question carefully before you start your answer.
© OCR 2025 [601/4675/8] DC (DE) 342416/3
OCR is an exempt Charity
Turn over
Section A
1 Define the term ‘business plan’.
..............................................................................................................................................
............ .................................................................................................................................
.........................
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.............. [2]
2 State two types of communication media a business may use.
, 2
1 ....................................................................................................................................
...................
2 ....................................................................................................................................
...................
[2]
3 A UK-based business exports its products to Greece, which uses the Euro (€) as its
currency. The product’s selling price, including transportation, is £165.
If the exchange rate is £1 = €1.22, calculate the price paid in Euros by a Greek
importer. Show your working.
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
Answer = € ........................................................... [2] 4 Explain two reasons
why the dismissal of an employee would be considered unfair.
1 ....................................................................................................................................
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2 ....................................................................................................................................
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© OCR 2025
, 3
5 Explain one reason why a business may choose to operate in each of the following
markets:
Physical
market ..........................................................................................................................
......
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
Non-physical
market ........................................................................................................................
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...................
[4]
6 State two characteristics of a public limited company.
1 ...................................................................................................................................
....................
2 ...................................................................................................................................
....................[2]
7 A business buys a new vehicle for £35 000. The Finance Director is considering
which method of depreciation to use.
Option 1: Straight line method
The vehicle will be depreciated over a five-year period with no residual value.
Option 2: Reducing balance method
The vehicle will be depreciated at a rate of 25% per year.
Using both these options, calculate the difference between the recorded value for
each option at the end of Year one. Show your working.
.......................................................................................................................................
...................
© OCR 2025 Turn over
, 4
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.......................................................................................................................................
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.......................................................................................................................................
...................
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Answer = £ ........................................................... [4] Section B
Use the Resource Booklet to answer the questions.
8 Analyse one likely benefit of innovation for Coffee#1.
..............................................................................................................................................
............ .................................................................................................................................
.........................
.......................................................................................................................................
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...................
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...................
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.......................................................................................................................................
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.......................................................................................................................................
.............. [4]
9 Evaluate whether ratio analysis is useful in assessing the performance of Coffee#1.
[9]
© OCR 2025
New Business
H431/02: The UK business environment
A Level
*1885163809*
• 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 16 pages.
ADVICE
• Read each question carefully before you start your answer.
© OCR 2025 [601/4675/8] DC (DE) 342416/3
OCR is an exempt Charity
Turn over
Section A
1 Define the term ‘business plan’.
..............................................................................................................................................
............ .................................................................................................................................
.........................
.......................................................................................................................................
...................
.......................................................................................................................................
.............. [2]
2 State two types of communication media a business may use.
, 2
1 ....................................................................................................................................
...................
2 ....................................................................................................................................
...................
[2]
3 A UK-based business exports its products to Greece, which uses the Euro (€) as its
currency. The product’s selling price, including transportation, is £165.
If the exchange rate is £1 = €1.22, calculate the price paid in Euros by a Greek
importer. Show your working.
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
Answer = € ........................................................... [2] 4 Explain two reasons
why the dismissal of an employee would be considered unfair.
1 ....................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
2 ....................................................................................................................................
....................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
© OCR 2025
, 3
5 Explain one reason why a business may choose to operate in each of the following
markets:
Physical
market ..........................................................................................................................
......
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
Non-physical
market ........................................................................................................................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
[4]
6 State two characteristics of a public limited company.
1 ...................................................................................................................................
....................
2 ...................................................................................................................................
....................[2]
7 A business buys a new vehicle for £35 000. The Finance Director is considering
which method of depreciation to use.
Option 1: Straight line method
The vehicle will be depreciated over a five-year period with no residual value.
Option 2: Reducing balance method
The vehicle will be depreciated at a rate of 25% per year.
Using both these options, calculate the difference between the recorded value for
each option at the end of Year one. Show your working.
.......................................................................................................................................
...................
© OCR 2025 Turn over
, 4
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
Answer = £ ........................................................... [4] Section B
Use the Resource Booklet to answer the questions.
8 Analyse one likely benefit of innovation for Coffee#1.
..............................................................................................................................................
............ .................................................................................................................................
.........................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
...................
.......................................................................................................................................
.............. [4]
9 Evaluate whether ratio analysis is useful in assessing the performance of Coffee#1.
[9]
© OCR 2025
