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2026 Update OCR AS Level Business H031-01 The Local Business Environment Verified Question Paper with Marking Scheme

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The OCR AS Level Business H031-01 The Local Business Environment Verified Question Paper with Marking Scheme is part of the OCR Business specification. It assesses students on core business concepts including enterprise, marketing, finance, operations, and the role of small and local businesses in the economy. This paper supports AS Level revision and exam preparation through structured application and analysis questions.

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2025 OCR2025
AS Level
OCR2025
Business
AS Level
OCR H03101
Business
AS LevelThe
H03101
Business
local business
The
H03101
local environment
business
The local environment
business
Verifiedenvironment
Question
Verified paper
Question
Verified
withpaper
Question
Marking
withpaper
Scheme
Marking
with
Attached.pdf
Scheme
MarkingAttached.pdf
Scheme Attached.pdf




2025 OCR AS Level Business
H031/01 The local business environment
Verified Question paper with Marking Scheme Attached



Oxford Cambridge and RSA

Friday 16 May 2025 – Morning
AS Level Business
H031/01 The local business environment
Time allowed: 1 hour 30 minutes

You must have:
• the Resource Booklet
You can use:
• a calculator




Please write clearly in black ink. Do not write in the barcodes.

Centre number Candidate number


First name(s)

Last name



INSTRUCTIONS
• 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 number(s).
• Answer all the questions.
• Use the Resource Booklet to answer the questions in Section B.

INFORMATION
• The total mark for this paper is 60.
• 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 [601/4674/6] OCR is an exempt Charity
DC (SL) 352175/2 Turn over


2025 OCR2025
AS Level
OCR2025
Business
AS Level
OCR H03101
Business
AS LevelThe
H03101
Business
local business
The
H03101
local environment
business
The local environment
business
Verifiedenvironment
Question
Verified paper
Question
Verified
withpaper
Question
Marking
withpaper
Scheme
Marking
with
Attached.pdf
Scheme
MarkingAttached.pdf
Scheme Attached.pdf

,2025 OCR2025
AS Level
OCR2025
Business
AS Level
OCR H03101
Business
AS LevelThe
H03101
Business
local business
The
H03101
local environment
business
The local environment
business
Verifiedenvironment
Question
Verified paper
Question
Verified
withpaper
Question
Marking
withpaper
Scheme
Marking
with
Attached.pdf
Scheme
MarkingAttached.pdf
Scheme Attached.pdf



2
Section A

Put a tick (✓) in the box next to the one correct answer for each question.


1 Four stages of the product life cycle are:

(a) development, globalisation, maturity, decline

(b) development, growth, marketing, recession

(c) development, growth, maturity, decline

(d) diversification, growth, maturity, decline
[1]


2 A business has increased its output in relation to its inputs.

Which statement must be true?

(a) Capacity utilisation has increased

(b) Productivity has increased

(c) Profit levels have increased

(d) Workforce motivation has increased
[1]


3 Rix Ltd is an independent convenience store.

What is Rix Ltd an example of?

(a) A private sector organisation that manufactures goods

(b) A secondary organisation that operates nationally

(c) A tertiary organisation that serves its local market

(d) A third sector organisation that provides a service
[1]


4 What is a short-term source of finance suitable for an entrepreneur starting their first business?

(a) Retained profit

(b) Sale and leaseback

(c) Trade credit
© OCR 2025




2025 OCR2025
AS Level
OCR2025
Business
AS Level
OCR H03101
Business
AS LevelThe
H03101
Business
local business
The
H03101
local environment
business
The local environment
business
Verifiedenvironment
Question
Verified paper
Question
Verified
withpaper
Question
Marking
withpaper
Scheme
Marking
with
Attached.pdf
Scheme
MarkingAttached.pdf
Scheme Attached.pdf

,2025 OCR2025
AS Level
OCR2025
Business
AS Level
OCR H03101
Business
AS LevelThe
H03101
Business
local business
The
H03101
local environment
business
The local environment
business
Verifiedenvironment
Question
Verified paper
Question
Verified
withpaper
Question
Marking
withpaper
Scheme
Marking
with
Attached.pdf
Scheme
MarkingAttached.pdf
Scheme Attached.pdf



3

(d) Venture capital
[1]




© OCR 2025 Turn over



2025 OCR2025
AS Level
OCR2025
Business
AS Level
OCR H03101
Business
AS LevelThe
H03101
Business
local business
The
H03101
local environment
business
The local environment
business
Verifiedenvironment
Question
Verified paper
Question
Verified
withpaper
Question
Marking
withpaper
Scheme
Marking
with
Attached.pdf
Scheme
MarkingAttached.pdf
Scheme Attached.pdf

, 2025 OCR2025
AS Level
OCR2025
Business
AS Level
OCR H03101
Business
AS LevelThe
H03101
Business
local business
The
H03101
local environment
business
The local environment
business
Verifiedenvironment
Question
Verified paper
Question
Verified
withpaper
Question
Marking
withpaper
Scheme
Marking
with
Attached.pdf
Scheme
MarkingAttached.pdf
Scheme Attached.pdf



4
5 A business has seven employees who each work 20 days a month. Last month, a total of 28 days
were lost due to illness.

What was the rate of absenteeism last month?

(a) 5%

(b) 20%

(c) 25%

(d) 40%
[1]


6 A bakery does not have a unique selling point (USP). In which section of the bakery’s SWOT analysis
should this be recorded?

(a) Opportunity

(b) Strength

(c) Threat

(d) Weakness
[1]


7 A business has added value to its products.

What is the most likely disadvantage for a customer of this?

(a) Higher prices

(b) Higher quality

(c) Limited availability

(d) Reduced functionality
[1]


8 What is a social factor that may affect a retailer?

(a) Advances in SMART technologies

(b) Fewer customers are using cash

(c) Government support for electric vehicles

(d) Increases in the cost of living

© OCR 2025




2025 OCR2025
AS Level
OCR2025
Business
AS Level
OCR H03101
Business
AS LevelThe
H03101
Business
local business
The
H03101
local environment
business
The local environment
business
Verifiedenvironment
Question
Verified paper
Question
Verified
withpaper
Question
Marking
withpaper
Scheme
Marking
with
Attached.pdf
Scheme
MarkingAttached.pdf
Scheme Attached.pdf

Document information

Study Level
Uploaded on
April 28, 2026
Number of pages
44
Written in
2025/2026
Type
Exam (elaborations)
Contains
Questions & answers
£10.84

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