OCR AS Level Business H031/01 The local business environment May 2025
Combined QUESTION PAPER and MARK SCHEME
Oxford Cambridge and RSA
Friday 16 May 2025 – Morning
AS Level Business
H031/01 The local business environment
*187 7 8 487 38 *
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
, 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
(d) Venture capital
[1]
© OCR 2025
, 3
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
[1]
© OCR 2025 Turn over
, 4
9 What is an example of good customer service for a school?
(a) A positive report in the local newspaper
(b) Achieving better than expected exam results
(c) Improving the students’ toilets
(d) Resolving parents’ queries quickly
[1]
10 A business’ cash-flow forecast for July is shown in the table.
July
Cash inflows £180 000
Cash outflows £190 000
Net cash inflow (£10 000)
Opening balance (£15 000)
Closing balance (£25 000)
The business needs to update these figures because July’s cash inflows are now expected to be
20% lower than originally forecast.
The closing balance for July is now forecast to be:
(a) (£61 000)
(b) (£30 000)
(c) (£20 000)
(d) £11 000
[1]
11 Which marketing tool is part of an ‘above the line’ promotional strategy?
(a) Direct mailing
(b) Newspaper advertising
(c) Personal selling
(d) Trade fairs
[1]
© OCR 2025
Combined QUESTION PAPER and MARK SCHEME
Oxford Cambridge and RSA
Friday 16 May 2025 – Morning
AS Level Business
H031/01 The local business environment
*187 7 8 487 38 *
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
, 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
(d) Venture capital
[1]
© OCR 2025
, 3
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
[1]
© OCR 2025 Turn over
, 4
9 What is an example of good customer service for a school?
(a) A positive report in the local newspaper
(b) Achieving better than expected exam results
(c) Improving the students’ toilets
(d) Resolving parents’ queries quickly
[1]
10 A business’ cash-flow forecast for July is shown in the table.
July
Cash inflows £180 000
Cash outflows £190 000
Net cash inflow (£10 000)
Opening balance (£15 000)
Closing balance (£25 000)
The business needs to update these figures because July’s cash inflows are now expected to be
20% lower than originally forecast.
The closing balance for July is now forecast to be:
(a) (£61 000)
(b) (£30 000)
(c) (£20 000)
(d) £11 000
[1]
11 Which marketing tool is part of an ‘above the line’ promotional strategy?
(a) Direct mailing
(b) Newspaper advertising
(c) Personal selling
(d) Trade fairs
[1]
© OCR 2025
