AQA A-LEVEL BUSINESS PAPER 1 REVISION QUESTIONS WITH CORRECT ANSWERS 2024

AQA A-LEVEL BUSINESS PAPER 1
REVISION QUESTIONS WITH CORRECT
ANSWERS 2024
WhyWbusinessesWexistW-WcorrectWanswer-CanWmakeWyouWmoneyWandWyouWcanWbeWyourWownWboss



MissionW-WcorrectWanswer-
aWbusinessWaimWexpressedWtoWmakeWitWseemWespeciallyWpurposefulWandWmotivating



ObjectivesW-WcorrectWanswer-SMARTWSpecific,WMeasurable,WAchievable,WRealistic,WTime-bound



WhyWbusinessesWsetWobjectivesW-WcorrectWanswer--WitWisWmotivatingWtoWhaveWaWgoalWtoWaimWtoward

-WasWaWbossWyouWcanWnotWmakeWeveryWdecision



ProfitW-WcorrectWanswer-RevenueW-WtotalWcosts



WhatWareWtheW5WtypesWofWbusinessW-WcorrectWanswer--soleWtraders

-privateWlimitedWcompaniesW(LTD)

-PublicWlimitedWcompaniesW(PLC)

-PrivateWandWpublicWsectorWorganisationsW

-Wnon-profitWorganisationsW(charities)



SoleWtradersW-WcorrectWanswer-aWbusinessWthatWisWownedWandWoperatedWbyWoneWperson



PrivateWLimitedWCompanyW(Ltd)W-WcorrectWanswer-
AWsmallWtoWmediumWsizedWcompany,WownedWbyWshareholdersWwhoWhaveWlimitedWliability.WTheWcompany
WcannotWsellWitsWsharesWtoWtheWgeneralWpublic.




PrivateWLimitedWCompanyWAdvantagesW-WcorrectWanswer--LimitedWliabilityW

-AdditionalWcapitalWcanWbeWraisedWbyWsellingWsharesW(notWtoWtheWgeneralWpublic)

,-SeparateWlegalWexistenceWtoWtheWownerW

-HigherWbusinessWstatusWtoWsoleWtrader



PrivateWlimitedWcompanyWDisadvantagesW-WcorrectWanswer--
YouWhaveWtoWpublishWtheWaccountWinformation

-YouWneedWtwoWshareWofW£1Weach



PublicWlimitedWcompanyW(plc)W-WcorrectWanswer-
AWlimitedWcompanyWwithWmoreWthatW£50,000WofWshareWcapital.WAnyWmemberWofWtheWpublicWcanWbuyWsh
ares.WPublicWcompaniesWmustWpublishWmoreWdetailedWaccounts



PublicWlimitedWcompanyWAdvantagesW-WcorrectWanswer--RaisingWcapitalWthroughWpublicWissueWofWshares

-OfferingWsharesWtoWtheWpublicWspreadsWriskW

-BanksWareWmoreWlikelyWtoWlendWmoneyWtoWPLC's

-MoreWgrowthWandWexpansionWopportunitiesW

-HavingWPLCWatWtheWendWofWyourWbusinessWnameWgivesWaWbetterWimage

-SharesWareWmoreWeasilyWtransferredWsoWshareholdersWareWhappierW

-SeparateWlegalWentityWtoWtheWowner



publicWlimitedWcompanyWDisadvantagesW-WcorrectWanswer--MoreWregulationsWthatWcouldWincreaseWcosts

-HigherWlevelWofWtransparencyWneededW

-MustWstartWwithW£50,000WshareWcapital



PrivateWsectorWorganisationsW-WcorrectWanswer-OrganisationsWownedWbyWindividualsWorWcompanies



PublicWsectorWorganisationsW-WcorrectWanswer-BusinessesWownedWbyWtheWgovernment.



Non-profitWorganisationsW-WcorrectWanswer-
BusinessesWwithWaWmotiveWotherWthanWprofit,WmayWbeWtoWprovideWaWsocialWbenefitWorWserviceWtoWsociet
yWorWtoWsupportWaWcause.

,ShareWcapitalW-WcorrectWanswer-
TheWtotalWvalueWofWcapitalWraisedWfromWshareholdersWbyWtheWissueWofWshares



RoleWofWShareholdersW-WcorrectWanswer-
toWraiseWimportantWissuesWwithWtheWboardWdirectorsWandWraiseWfunds



WhyWshareholdersWinvestW-WcorrectWanswer--AnnualWdividendWpaymentsW

-AWriseWinWtheWvalueWofWshares



MarketWcapitalisationW-WcorrectWanswer-NumberWofWissuedWsharesWxWcurrentWshareWprice



InfluencesWonWtheWpriceWofWsharesW-WcorrectWanswer--
TheWprofitWafterWtaxWofWtheWcompanyWxWtheWvalueWinvestorsWplaceWonWonWthoseWearnings



SignificanceWofWshareWpriceWchangesW-WcorrectWanswer-
HighW=WcheapWandWeasyWtoWobtainWmoreWshareWcapital

LowW=WunlikelyWtoWraiseWanyWextraWshareWcapital



WhatWareWtheW6WexternalWfactorsWaffectingWbusinessesW-WcorrectWanswer--MarketWconditionsW

-CompetitionW

-ChangesWinWhouseholdWincomesW

-ChangesWinWinterestWrates

-DemographicWfactors

-EnvironmentalWissues



MarketWConditionsW-WcorrectWanswer--TheWnumberWofWcompetitorsWinWaWparticularWmarketW

-TheWintensityWofWcompetitivenessW

-TotalWmarketWavailableW

-TheWrateWatWwhichWtheWmarketWisWgrowing

, CompetitionW-WcorrectWanswer-
TheWtighterWtheWeconomicWandWmarketWconditions,WtheWgreaterWtheWcompetitiveWpressuresWtendWtoWbe



FactorsWthatWeffectWhouseholdWincomesW-WcorrectWanswer--
ChangesWinWtheWrealWincomeWofWtheWmainWincomeWearnerW

-TheWnumberWofWpeopleWinWtheWhouseholdWthatWwork

-TheWimpactWofWgovernmentWdecisionsWonWtaxationWandWbenefits



ChangesWinWinterestWratesW-WcorrectWanswer-
IfWinterestWratesWgoWup,WbusinessesWandWindividualsWspendWless.WIfWinterestWratesWgoWdown,WbusinessesW
andWindividualsWspendWmore.



DemographicWfactorsW-WcorrectWanswer--PopulationWsizeW

-AgeW

-Gender

-Ethnicity



EnvironmentalWissuesWandWfair-tradeW-WcorrectWanswer-
ConcernWforWgreenWissuesWandWethicalWissuesWinvolvedWwithWbusiness.



WhatWdoWmanagersWdoW-WcorrectWanswer-
SetWobjectives,Worganize,WmotivateWandWcommunicate,Wmeasure,WdevelopWpeople



WhatWareWtheWleadershipWstylesW-WcorrectWanswer--AutocraticWmanagersW

-DemocraticWmanagersW(laissez-faire)

-Paternalistic



AutocraticWmanagersW-WcorrectWanswer-
ManagersWwhoWcentraliseWpowerWandWtellWemployeesWwhatWtoWdo.WTheyWtendWtoWuseWone-way,Wtop-
downWcommunication.