Question Paper & Mark Scheme (Merged)
Friday 16 May 2025 [VERIFIED]
, 2
Do not write
outside the
Section A
box
Answer all questions in this section.
Only one answer per question is allowed.
For each question completely fill in the circle alongside the appropriate answer.
CORRECT METHOD WRONG METHODS
If you want to change your answer you must cross out your original answer as shown.
If you wish to return to an answer previously crossed out, ring the answer you now wish to select
as shown.
0 1 Statement 1: ‘A sole trader is personally liable for all debts of the business.’
Statement 2: ‘The owners of a public limited company are guaranteed to receive higher
dividends if profits increase.’
Read statements 1 and 2 and select the correct option from the following:
[1 mark]
A Statement 1 is true. Statement 2 is true.
B Statement 1 is true. Statement 2 is false.
C Statement 1 is false. Statement 2 is true.
D Statement 1 is false. Statement 2 is false.
0 2 Which of the following statements is the most likely example of an objective that the
operations function of a business might set?
[1 mark]
A To deliver 90% of customer orders within 72 hours of order.
B To increase net cash flow to £15 000 for the month of October.
C To increase the value of sales by 15% by the end of 2026.
D To reduce rates of absenteeism by 10% during 2026.
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, 3
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outside the
0 3 Which of the following options should a business choose to improve its gross profit box
margin?
[1 mark]
A Ask the owner of the building for a reduction in the rent paid for the
head office.
B Increase the selling price of each product by £25.
C Offer customers a discount for making payment within 14 days.
D Sell some non-current assets that were bought for £90 000 in 2024.
0 4 Originally a business targeted its marketing towards male customers. It decides to change its
focus to those customers who have the highest frequency of purchases.
This is a change from:
[1 mark]
A behavioural segmentation to income segmentation.
B demographic segmentation to behavioural segmentation.
C demographic segmentation to income segmentation.
D geographic segmentation to behavioural segmentation.
0 5 The table below provides data on XYZ plc’s four factories.
XYZ plc aims to achieve a minimum labour productivity of 3 units per employee and unit costs
below £5.
Which of its factories achieves both aims?
Number of Total cost
Factory Output
employees £
Factory A 25 100 550
A
Factory B 40 100 600
B
Factory C 50 200 800
C
Factory D 100 200 1200
D
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, 4
Do not write
outside the
[1 mark]
Turn over ►
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