3.1 What is a Business? Practice Exam Questions
🌱 Case Study: The Green Bean Café
The Green Bean Café is a small, independent coffee shop located in a busy urban area.
It was founded by two university graduates, Jess and Amira, with the aim of promoting
ethical and sustainable business practices. The café sources fair-trade coffee, uses
compostable packaging, and donates a portion of its profits to local environmental
charities.
Recently, The Green Bean Café has been facing increased competition from a large
chain coffee shop that opened nearby. Jess and Amira are considering whether to
expand their business and open a second location, but they are unsure whether to
remain as a partnership or form a private limited company. They are also concerned
about rising costs and the impact of interest rate changes on their loan repayments.
🧠 5 Mark Questions
(Skill focus: Explain/Apply)
1. Explain one reason why Jess and Amira might set a social objective for The
Green Bean Café.
2. Explain what is meant by 'variable costs' and give an example from The
Green Bean Café.
3. Explain one reason why a business might choose to operate as a sole trader.
4. Explain the difference between fixed and variable costs using examples
from the café.
5. Explain one reason why Jess and Amira might want to measure profit.
🔍 9 Mark Questions
(Skill focus: Analyse)
1. Analyse the potential impact on The Green Bean Café’s costs if interest
rates increase.
2. Analyse how demographic changes in the local area could affect demand for
the café’s products.
,3.1 What is a Business? Practice Exam Questions
3. Analyse one way that rising competition could influence The Green Bean
Café’s business objectives.
4. Analyse the benefits of setting ethical objectives for The Green Bean Café.
5. Analyse how limited liability could affect Jess and Amira’s decision to
become a private limited company.
⚖️ 12 Mark Questions
(Skill focus: Evaluate with limited depth)
1. Evaluate the advantages and disadvantages of Jess and Amira changing the
business structure from a partnership to a private limited company.
2. Evaluate whether Jess and Amira should prioritise profit or social objectives.
3. Evaluate the importance of understanding fixed and variable costs when
planning expansion.
4. Evaluate whether measuring cash flow is more important than measuring
profit for a small café.
5. Evaluate the potential impact of environmental concerns on The Green Bean
Café’s demand and costs.
🔄 16 Mark Questions
(Skill focus: Balanced evaluation with context)
1. Evaluate whether growth or survival should be The Green Bean Café’s main
business objective in the current situation.
2. Evaluate whether converting to a private limited company is the best option
for The Green Bean Café’s expansion plans.
3. Evaluate how market conditions could influence the success of the café’s
decision to open a second branch.
4. Evaluate whether competition or interest rates will have a greater effect on
the café’s costs and objectives.
5. Evaluate how the café’s mission may influence its future business
decisions.
, 3.1 What is a Business? Practice Exam Questions
🧾 20 Mark Essay Questions
(Skill focus: Extended balanced judgement with depth)
1. To what extent should small ethical businesses, like The Green Bean Café,
focus on profit as their main objective?
2. To what extent does the form of business ownership influence the ability of
small businesses to achieve their objectives?
3. Assess whether the café’s focus on social and ethical objectives supports
long-term success.
4. To what extent do external factors such as income levels and competition
determine the success of a café like The Green Bean?
5. Evaluate the view that cash flow is more important than profit for small
start-up businesses.
🧠🧠 25 Mark Synoptic Essay Questions
(Skill focus: Strategic, synoptic thinking with judgement)
1. Assess how external environmental factors and the café’s business form
might influence the success of its expansion.
2. Evaluate the extent to which a mission statement can guide long-term
decision-making in small ethical businesses.
3. Assess how far changing from a partnership to a private limited company
will help The Green Bean Café achieve its growth and ethical objectives.
4. Evaluate the significance of profit as a measure of success in a business
with strong ethical and social aims.
5. To what extent are social enterprises like The Green Bean Café better able to
survive in competitive markets compared to profit-driven firms?
Essay Plan Section
This is aimed to help you as a student on how to structure your essays:
🌱 Case Study: The Green Bean Café
The Green Bean Café is a small, independent coffee shop located in a busy urban area.
It was founded by two university graduates, Jess and Amira, with the aim of promoting
ethical and sustainable business practices. The café sources fair-trade coffee, uses
compostable packaging, and donates a portion of its profits to local environmental
charities.
Recently, The Green Bean Café has been facing increased competition from a large
chain coffee shop that opened nearby. Jess and Amira are considering whether to
expand their business and open a second location, but they are unsure whether to
remain as a partnership or form a private limited company. They are also concerned
about rising costs and the impact of interest rate changes on their loan repayments.
🧠 5 Mark Questions
(Skill focus: Explain/Apply)
1. Explain one reason why Jess and Amira might set a social objective for The
Green Bean Café.
2. Explain what is meant by 'variable costs' and give an example from The
Green Bean Café.
3. Explain one reason why a business might choose to operate as a sole trader.
4. Explain the difference between fixed and variable costs using examples
from the café.
5. Explain one reason why Jess and Amira might want to measure profit.
🔍 9 Mark Questions
(Skill focus: Analyse)
1. Analyse the potential impact on The Green Bean Café’s costs if interest
rates increase.
2. Analyse how demographic changes in the local area could affect demand for
the café’s products.
,3.1 What is a Business? Practice Exam Questions
3. Analyse one way that rising competition could influence The Green Bean
Café’s business objectives.
4. Analyse the benefits of setting ethical objectives for The Green Bean Café.
5. Analyse how limited liability could affect Jess and Amira’s decision to
become a private limited company.
⚖️ 12 Mark Questions
(Skill focus: Evaluate with limited depth)
1. Evaluate the advantages and disadvantages of Jess and Amira changing the
business structure from a partnership to a private limited company.
2. Evaluate whether Jess and Amira should prioritise profit or social objectives.
3. Evaluate the importance of understanding fixed and variable costs when
planning expansion.
4. Evaluate whether measuring cash flow is more important than measuring
profit for a small café.
5. Evaluate the potential impact of environmental concerns on The Green Bean
Café’s demand and costs.
🔄 16 Mark Questions
(Skill focus: Balanced evaluation with context)
1. Evaluate whether growth or survival should be The Green Bean Café’s main
business objective in the current situation.
2. Evaluate whether converting to a private limited company is the best option
for The Green Bean Café’s expansion plans.
3. Evaluate how market conditions could influence the success of the café’s
decision to open a second branch.
4. Evaluate whether competition or interest rates will have a greater effect on
the café’s costs and objectives.
5. Evaluate how the café’s mission may influence its future business
decisions.
, 3.1 What is a Business? Practice Exam Questions
🧾 20 Mark Essay Questions
(Skill focus: Extended balanced judgement with depth)
1. To what extent should small ethical businesses, like The Green Bean Café,
focus on profit as their main objective?
2. To what extent does the form of business ownership influence the ability of
small businesses to achieve their objectives?
3. Assess whether the café’s focus on social and ethical objectives supports
long-term success.
4. To what extent do external factors such as income levels and competition
determine the success of a café like The Green Bean?
5. Evaluate the view that cash flow is more important than profit for small
start-up businesses.
🧠🧠 25 Mark Synoptic Essay Questions
(Skill focus: Strategic, synoptic thinking with judgement)
1. Assess how external environmental factors and the café’s business form
might influence the success of its expansion.
2. Evaluate the extent to which a mission statement can guide long-term
decision-making in small ethical businesses.
3. Assess how far changing from a partnership to a private limited company
will help The Green Bean Café achieve its growth and ethical objectives.
4. Evaluate the significance of profit as a measure of success in a business
with strong ethical and social aims.
5. To what extent are social enterprises like The Green Bean Café better able to
survive in competitive markets compared to profit-driven firms?
Essay Plan Section
This is aimed to help you as a student on how to structure your essays:
