AQA A LEVEL BUSINESS PAPER 3 FINAL PAPER
2026 QUESTIONS WITH ANSWERS GRADED
A+
◉ Average Rate of Return. Answer: The average profit for the year as a
percentage of the original investment.
Average rate or return = average return per annum / initial 100
◉ Break-Even Output. Answer: The point at which the business' total
sales equals the total costs. There is neither profit nor loss.
◉ Buffer Stock. Answer: A stock of raw materials held in reserve to
protect the production process from unforeseen shortages.
◉ Cash-Flow Forecast. Answer: A financial planning tool that estimates
the money coming into and going out the business on a month to month
basis
◉ Centralisation. Answer: Maintaining control by keeping authority at
the senior levels of the organisation.
, ◉ Chain of Command. Answer: The line through the hierarchy that
shows who is responsible for whom from top to bottom of an
organisation
◉ Channels of Distribution. Answer: The route the ownership of the
product transfers from the seller to the buyer
◉ Commission. Answer: An amount paid to an employee based on a
percentage of the employee's sales
◉ Competitive Pricing. Answer: Setting the price of a product so that it
is in line with competitors' prices.
◉ Cost-Plus Pricing. Answer: Setting the price of a good or service at an
amount higher than the cost of producing
◉ Decentralisation. Answer: Where authority is spread widely through
the organisation.
◉ Delayering. Answer: The reorganisation of the organisations's
employees so that there are fewer levels of management
◉ Delegation. Answer: Allocating a task to someone who would not
normally be responsible for it
2026 QUESTIONS WITH ANSWERS GRADED
A+
◉ Average Rate of Return. Answer: The average profit for the year as a
percentage of the original investment.
Average rate or return = average return per annum / initial 100
◉ Break-Even Output. Answer: The point at which the business' total
sales equals the total costs. There is neither profit nor loss.
◉ Buffer Stock. Answer: A stock of raw materials held in reserve to
protect the production process from unforeseen shortages.
◉ Cash-Flow Forecast. Answer: A financial planning tool that estimates
the money coming into and going out the business on a month to month
basis
◉ Centralisation. Answer: Maintaining control by keeping authority at
the senior levels of the organisation.
, ◉ Chain of Command. Answer: The line through the hierarchy that
shows who is responsible for whom from top to bottom of an
organisation
◉ Channels of Distribution. Answer: The route the ownership of the
product transfers from the seller to the buyer
◉ Commission. Answer: An amount paid to an employee based on a
percentage of the employee's sales
◉ Competitive Pricing. Answer: Setting the price of a product so that it
is in line with competitors' prices.
◉ Cost-Plus Pricing. Answer: Setting the price of a good or service at an
amount higher than the cost of producing
◉ Decentralisation. Answer: Where authority is spread widely through
the organisation.
◉ Delayering. Answer: The reorganisation of the organisations's
employees so that there are fewer levels of management
◉ Delegation. Answer: Allocating a task to someone who would not
normally be responsible for it
