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OCR A LEVEL 2025 BUSINESS Paper 1 QP + free study guide at end

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OCR A LEVEL 2025 BUSINESS Paper 1 QP + free study guide at end

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Oxford Cambridge and RSA

Wednesday 14 May 2025 – Morning
A Level Business
H431/01 Operating in a local business environment
Time allowed: 2 hours

You must have:
* 1 8 8 5 1 6 7 6 6 4 *




• the Resource Booklet
You can use:
• a calculator




* H 4 3 1 0 1 *




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 numbers.
• Use the Resource Booklet to answer the questions in Section B.
• Answer all the questions.

INFORMATION
• The total mark for this paper is 80.
• 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 20 pages.

ADVICE
• Read each question carefully before you start your answer.




© OCR 2025 [601/4675/8] OCR is an exempt Charity
DC (SL/CT) 352163/4 Turn over


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, 2
Section A

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

1 Profits made by a co-operative are:

(a) distributed to shareholders

(b) donated to charity

(c) paid to central government

(d) shared between members
[1]


2 What is a correct way to calculate added value?

(a) Actual cost minus budgeted cost

(b) Current assets minus current liabilities

(c) Margin of safety multiplied by unit contribution

(d) Selling price minus cost of inputs
[1]


3 One way a school can act in a more sustainable manner is by:

(a) purchasing e-textbooks rather than paper copies

(b) raising money for local animal welfare charities

(c) removing the onsite chocolate bar vending machine

(d) sending broken laptops and tablets to landfill
[1]


4 An advantage of producing a budget is that it:

(a) sets no specific limits on spending

(b) will automatically be fixed at the same level as the previous year

(c) will be increased by a set percentage each year

(d) will provide information to help managers monitor performance
[1]




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, 3
5 The schedule for a project is shown in the network diagram. All timings are in weeks.


13
3
B 13 D
4 30

0 A 9 43 F 84
1 2 5 6
0 9 9 43 41 84

C E
5 15
14
2
28


Assuming no other changes, if activity C takes twice as long as expected, how many weeks will
this delay the completion of the project?

(a) 0

(b) 1

(c) 4

(d) 5
[1]


6 A mission statement:

(a) can be used as a marketing tool

(b) is a financial document

(c) limits corporate vision

(d) turns tactical objectives into a strategy
[1]


7 What is not an example of lean production for a tomato ketchup manufacturer?

(a) Creating quality circles to solve problems in the bottling area

(b) Improving the ergonomic layout of the food preparation area

(c) Producing each bottle of tomato ketchup using job production

(d) Using just in time (JIT) to keep stocks of tomatoes to a minimum
[1]



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, 4
8 What is a form of external growth?

(a) A dominant firm

(b) A strategic alliance

(c) A works council

(d) International trade
[1]


9 Organisational culture:

(a) attempts to explain consumer buying behaviour

(b) evaluates the function, cost, and aesthetics of new products

(c) reflects the attitudes, values, and beliefs of a business

(d) requires the involvement of a trade union
[1]


10 An income statement for APL plc is shown.

£m £m
Revenue 880
Cost of sales 340
Gross profit 540
Expenses 220
Operating profit ?
Finance costs 21
Profit before tax 299
Tax 74
Dividends 45
Retained profit 180

What is APL plc’s operating profit for the year?

(a) £278m

(b) £320m

(c) £760m

(d) £1420m
[1]
© OCR 2025



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