1
AQA A LEVEL BUSINESS PAPER 1 NEWEST ACTUAL
2025/2026 EXAM WITH COMPLETE QUESTIONS AND
ANSWERS/VERIFIED/GRADED A+/GUARANTEE
PASS.// JUST RELEASED!!!!!)
Why businesses exist - (ANSWER)Can make you money and you can be your own
boss
Mission - (ANSWER)a business aim expressed to make it seem especially
purposeful and motivating
Objectives - (ANSWER)SMART Specific, Measurable, Achievable, Realistic, Time-
bound
Why businesses set objectives - (ANSWER)- it is motivating to have a goal to aim
toward
- as a boss you can not make every decision
Profit - (ANSWER)Revenue - total costs
What are the 5 types of business - (ANSWER)-sole traders
-private limited companies (LTD)
-Public limited companies (PLC)
-Private and public sector organisations
- non-profit organisations (charities)
,2
Sole traders - (ANSWER)a business that is owned and operated by one person
Private Limited Company (Ltd) - (ANSWER)A small to medium sized company,
owned by shareholders who have limited liability. The company cannot sell its
shares to the general public.
Private Limited Company Advantages - (ANSWER)-Limited liability
-Additional capital can be raised by selling shares (not to the general public)
-Separate legal existence to the owner
-Higher business status to sole trader
Private limited company Disadvantages - (ANSWER)-You have to publish the
account information
-You need two share of £1 each
Public limited company (plc) - (ANSWER)A limited company with more that
£50,000 of share capital. Any member of the public can buy shares. Public
companies must publish more detailed accounts
Public limited company Advantages - (ANSWER)-Raising capital through public
issue of shares
-Offering shares to the public spreads risk
-Banks are more likely to lend money to PLC's
,3
-More growth and expansion opportunities
-Having PLC at the end of your business name gives a better image
-Shares are more easily transferred so shareholders are happier
-Separate legal entity to the owner
public limited company Disadvantages - (ANSWER)-More regulations that could
increase costs
-Higher level of transparency needed
-Must start with £50,000 share capital
Private sector organisations - (ANSWER)Organisations owned by individuals or
companies
Public sector organisations - (ANSWER)Businesses owned by the government.
Non-profit organisations - (ANSWER)Businesses with a motive other than profit,
may be to provide a social benefit or service to society or to support a cause.
Share capital - (ANSWER)The total value of capital raised from shareholders by
the issue of shares
Role of Shareholders - (ANSWER)to raise important issues with the board
directors and raise funds
, 4
Why shareholders invest - (ANSWER)-Annual dividend payments
-A rise in the value of shares
Market capitalisation - (ANSWER)Number of issued shares x current share price
Influences on the price of shares - (ANSWER)-The profit after tax of the company
x the value investors place on on those earnings
Significance of share price changes - (ANSWER)High = cheap and easy to obtain
more share capital
Low = unlikely to raise any extra share capital
What are the 6 external factors affecting businesses - (ANSWER)-Market
conditions
-Competition
-Changes in household incomes
-Changes in interest rates
-Demographic factors
-Environmental issues
Market Conditions - (ANSWER)-The number of competitors in a particular market
-The intensity of competitiveness
AQA A LEVEL BUSINESS PAPER 1 NEWEST ACTUAL
2025/2026 EXAM WITH COMPLETE QUESTIONS AND
ANSWERS/VERIFIED/GRADED A+/GUARANTEE
PASS.// JUST RELEASED!!!!!)
Why businesses exist - (ANSWER)Can make you money and you can be your own
boss
Mission - (ANSWER)a business aim expressed to make it seem especially
purposeful and motivating
Objectives - (ANSWER)SMART Specific, Measurable, Achievable, Realistic, Time-
bound
Why businesses set objectives - (ANSWER)- it is motivating to have a goal to aim
toward
- as a boss you can not make every decision
Profit - (ANSWER)Revenue - total costs
What are the 5 types of business - (ANSWER)-sole traders
-private limited companies (LTD)
-Public limited companies (PLC)
-Private and public sector organisations
- non-profit organisations (charities)
,2
Sole traders - (ANSWER)a business that is owned and operated by one person
Private Limited Company (Ltd) - (ANSWER)A small to medium sized company,
owned by shareholders who have limited liability. The company cannot sell its
shares to the general public.
Private Limited Company Advantages - (ANSWER)-Limited liability
-Additional capital can be raised by selling shares (not to the general public)
-Separate legal existence to the owner
-Higher business status to sole trader
Private limited company Disadvantages - (ANSWER)-You have to publish the
account information
-You need two share of £1 each
Public limited company (plc) - (ANSWER)A limited company with more that
£50,000 of share capital. Any member of the public can buy shares. Public
companies must publish more detailed accounts
Public limited company Advantages - (ANSWER)-Raising capital through public
issue of shares
-Offering shares to the public spreads risk
-Banks are more likely to lend money to PLC's
,3
-More growth and expansion opportunities
-Having PLC at the end of your business name gives a better image
-Shares are more easily transferred so shareholders are happier
-Separate legal entity to the owner
public limited company Disadvantages - (ANSWER)-More regulations that could
increase costs
-Higher level of transparency needed
-Must start with £50,000 share capital
Private sector organisations - (ANSWER)Organisations owned by individuals or
companies
Public sector organisations - (ANSWER)Businesses owned by the government.
Non-profit organisations - (ANSWER)Businesses with a motive other than profit,
may be to provide a social benefit or service to society or to support a cause.
Share capital - (ANSWER)The total value of capital raised from shareholders by
the issue of shares
Role of Shareholders - (ANSWER)to raise important issues with the board
directors and raise funds
, 4
Why shareholders invest - (ANSWER)-Annual dividend payments
-A rise in the value of shares
Market capitalisation - (ANSWER)Number of issued shares x current share price
Influences on the price of shares - (ANSWER)-The profit after tax of the company
x the value investors place on on those earnings
Significance of share price changes - (ANSWER)High = cheap and easy to obtain
more share capital
Low = unlikely to raise any extra share capital
What are the 6 external factors affecting businesses - (ANSWER)-Market
conditions
-Competition
-Changes in household incomes
-Changes in interest rates
-Demographic factors
-Environmental issues
Market Conditions - (ANSWER)-The number of competitors in a particular market
-The intensity of competitiveness
