AQA AS BUSINESS 7131/2 PAPER 2
ULTIMATE MOCK EXAM SCRIPT 150
QUESTIONS + DETAILED
RATIONALES A+ GUARANTEE
AQA AS BUSINESS 7131/2 Paper 2: Managing a
Business Mock Exam Script 2026 Questions 1–150
1. Which of the following best describes the primary
objective of a social enterprise? A) To maximize
shareholder dividends through aggressive market
expansion. B) To reinvest profits into achieving specific
social or environmental goals. Correct Answer
Social enterprises prioritize social impact over profit
maximization for owners, reinvesting surplus to further
their cause. C) To minimize operational costs by
outsourcing all production to low-wage countries. D) To
achieve the highest possible market share regardless of
ethical considerations.
2. A business is experiencing high staff turnover in its
customer service department. Which financial metric
would most directly reflect the cost of this issue? A) Gross
Profit Margin B) Recruitment and training expenses.
Correct Answer High turnover leads to increased
spending on advertising vacancies, interviewing, and
training new hires, directly impacting operating
expenses. C) Return on Capital Employed (ROCE) D)
Current Ratio
3. In the context of Ansoff’s Matrix, launching a new product
into an existing market is classified as: A) Market
, Penetration B) Product Development. Correct
Answer Product development involves creating new
products for current customers/markets, carrying
moderate risk compared to diversification. C) Market
Development D) Diversification
4. Which leadership style is most appropriate when a
business is facing a sudden crisis requiring immediate,
unified action? A) Laissez-faire B) Democratic C)
Autocratic. Correct Answer Autocratic leadership
allows for quick decision-making without consultation,
which is essential during emergencies where time is
critical. D) Paternalistic
5. Calculate the break-even output if fixed costs are £50,000,
the selling price per unit is £20, and the variable cost per
unit is £10. A) 2,500 units B) 5,000 units. Correct
Answer Break-even = Fixed Costs / Contribution per
unit. Contribution = £20 - £10 = £10. £50,000 / £10 =
5,000 units. C) 10,000 units D) 50,000 units
6. Which of the following is a non-financial motive for
becoming an entrepreneur? A) Achieving a high return on
investment. B) Independence and being one’s own boss.
Correct Answer Non-financial motives include
personal satisfaction, autonomy, and pursuing a passion,
rather than monetary gain. C) Maximizing sales revenue.
D) Securing venture capital funding.
7. A company decides to downsize its workforce to improve
efficiency. This is an example of: A) Organic growth B)
Delayering. Correct Answer Delayering involves
removing layers of hierarchy to reduce costs and speed
up communication, often resulting in job losses. C)
Market penetration D) Job enrichment
,8. Which external factor would be analyzed under the
‘Technological’ heading of a PESTLE analysis? A) Changes
in interest rates set by the central bank. B) The
introduction of AI automation in manufacturing
processes. Correct Answer Technological factors
relate to innovations, automation, and R&D activity that
can change how businesses operate. C) New legislation
regarding minimum wage. D) Shifts in consumer
demographics.
9. What is the main advantage of using secondary market
research? A) It provides data specific to the company’s
unique current situation. B) It is generally cheaper and
faster to obtain than primary research. Correct
Answer Secondary data already exists (e.g.,
government reports), saving time and money compared
to conducting new surveys. C) It is always more accurate
than primary research. D) It guarantees exclusive insights
not available to competitors.
10. If a business has a current ratio of 0.8:1, what does
this indicate? A) The business has excessive idle cash. B)
The business may face liquidity problems paying short-
term debts. Correct Answer A ratio below 1:1
suggests current liabilities exceed current assets,
indicating potential difficulty in meeting immediate
obligations. C) The business is highly profitable. D) The
business is over-trading.
11. Which stakeholder group is most likely to be
interested in a company’s dividend payments? A)
Employees B) Shareholders. Correct Answer
Shareholders invest capital expecting a return, primarily
through dividends and capital growth. C) Customers D)
Local Community
, 12. In a SWOT analysis, a new competitor entering the
market would be classified as a: A) Strength B) Weakness
C) Opportunity D) Threat. Correct Answer External
factors that could harm the business, such as new
competition, are classified as Threats.
13. What is the definition of ‘opportunity cost’ in a
business context? A) The total cost of producing a good. B)
The next best alternative foregone when a decision is
made. Correct Answer Opportunity cost represents
the benefit lost from not choosing the second-best option.
C) The fixed costs incurred regardless of output. D) The
difference between revenue and variable costs.
14. Which motivation theory suggests that employees are
motivated by hygiene factors (like pay) and motivators
(like recognition)? A) Maslow’s Hierarchy of Needs B)
Herzberg’s Two-Factor Theory. Correct Answer
Herzberg distinguished between factors that prevent
dissatisfaction (hygiene) and those that create
satisfaction (motivators). C) Taylor’s Scientific
Management D) Mayo’s Human Relations Theory
15. A business increases its advertising spend, leading to
a significant rise in sales. This is an example of: A) Cost-
push inflation B) Demand-side policy impact. Correct
Answer Advertising aims to shift the demand curve to
the right by increasing consumer awareness and desire.
C) Supply-side improvement D) Economies of scale
16. Which of the following is a characteristic of a private
limited company (Ltd)? A) Shares are traded on the stock
exchange. B) Limited liability for shareholders. Correct
Answer Shareholders in an Ltd are only liable for the
amount they invested; their personal assets are
ULTIMATE MOCK EXAM SCRIPT 150
QUESTIONS + DETAILED
RATIONALES A+ GUARANTEE
AQA AS BUSINESS 7131/2 Paper 2: Managing a
Business Mock Exam Script 2026 Questions 1–150
1. Which of the following best describes the primary
objective of a social enterprise? A) To maximize
shareholder dividends through aggressive market
expansion. B) To reinvest profits into achieving specific
social or environmental goals. Correct Answer
Social enterprises prioritize social impact over profit
maximization for owners, reinvesting surplus to further
their cause. C) To minimize operational costs by
outsourcing all production to low-wage countries. D) To
achieve the highest possible market share regardless of
ethical considerations.
2. A business is experiencing high staff turnover in its
customer service department. Which financial metric
would most directly reflect the cost of this issue? A) Gross
Profit Margin B) Recruitment and training expenses.
Correct Answer High turnover leads to increased
spending on advertising vacancies, interviewing, and
training new hires, directly impacting operating
expenses. C) Return on Capital Employed (ROCE) D)
Current Ratio
3. In the context of Ansoff’s Matrix, launching a new product
into an existing market is classified as: A) Market
, Penetration B) Product Development. Correct
Answer Product development involves creating new
products for current customers/markets, carrying
moderate risk compared to diversification. C) Market
Development D) Diversification
4. Which leadership style is most appropriate when a
business is facing a sudden crisis requiring immediate,
unified action? A) Laissez-faire B) Democratic C)
Autocratic. Correct Answer Autocratic leadership
allows for quick decision-making without consultation,
which is essential during emergencies where time is
critical. D) Paternalistic
5. Calculate the break-even output if fixed costs are £50,000,
the selling price per unit is £20, and the variable cost per
unit is £10. A) 2,500 units B) 5,000 units. Correct
Answer Break-even = Fixed Costs / Contribution per
unit. Contribution = £20 - £10 = £10. £50,000 / £10 =
5,000 units. C) 10,000 units D) 50,000 units
6. Which of the following is a non-financial motive for
becoming an entrepreneur? A) Achieving a high return on
investment. B) Independence and being one’s own boss.
Correct Answer Non-financial motives include
personal satisfaction, autonomy, and pursuing a passion,
rather than monetary gain. C) Maximizing sales revenue.
D) Securing venture capital funding.
7. A company decides to downsize its workforce to improve
efficiency. This is an example of: A) Organic growth B)
Delayering. Correct Answer Delayering involves
removing layers of hierarchy to reduce costs and speed
up communication, often resulting in job losses. C)
Market penetration D) Job enrichment
,8. Which external factor would be analyzed under the
‘Technological’ heading of a PESTLE analysis? A) Changes
in interest rates set by the central bank. B) The
introduction of AI automation in manufacturing
processes. Correct Answer Technological factors
relate to innovations, automation, and R&D activity that
can change how businesses operate. C) New legislation
regarding minimum wage. D) Shifts in consumer
demographics.
9. What is the main advantage of using secondary market
research? A) It provides data specific to the company’s
unique current situation. B) It is generally cheaper and
faster to obtain than primary research. Correct
Answer Secondary data already exists (e.g.,
government reports), saving time and money compared
to conducting new surveys. C) It is always more accurate
than primary research. D) It guarantees exclusive insights
not available to competitors.
10. If a business has a current ratio of 0.8:1, what does
this indicate? A) The business has excessive idle cash. B)
The business may face liquidity problems paying short-
term debts. Correct Answer A ratio below 1:1
suggests current liabilities exceed current assets,
indicating potential difficulty in meeting immediate
obligations. C) The business is highly profitable. D) The
business is over-trading.
11. Which stakeholder group is most likely to be
interested in a company’s dividend payments? A)
Employees B) Shareholders. Correct Answer
Shareholders invest capital expecting a return, primarily
through dividends and capital growth. C) Customers D)
Local Community
, 12. In a SWOT analysis, a new competitor entering the
market would be classified as a: A) Strength B) Weakness
C) Opportunity D) Threat. Correct Answer External
factors that could harm the business, such as new
competition, are classified as Threats.
13. What is the definition of ‘opportunity cost’ in a
business context? A) The total cost of producing a good. B)
The next best alternative foregone when a decision is
made. Correct Answer Opportunity cost represents
the benefit lost from not choosing the second-best option.
C) The fixed costs incurred regardless of output. D) The
difference between revenue and variable costs.
14. Which motivation theory suggests that employees are
motivated by hygiene factors (like pay) and motivators
(like recognition)? A) Maslow’s Hierarchy of Needs B)
Herzberg’s Two-Factor Theory. Correct Answer
Herzberg distinguished between factors that prevent
dissatisfaction (hygiene) and those that create
satisfaction (motivators). C) Taylor’s Scientific
Management D) Mayo’s Human Relations Theory
15. A business increases its advertising spend, leading to
a significant rise in sales. This is an example of: A) Cost-
push inflation B) Demand-side policy impact. Correct
Answer Advertising aims to shift the demand curve to
the right by increasing consumer awareness and desire.
C) Supply-side improvement D) Economies of scale
16. Which of the following is a characteristic of a private
limited company (Ltd)? A) Shares are traded on the stock
exchange. B) Limited liability for shareholders. Correct
Answer Shareholders in an Ltd are only liable for the
amount they invested; their personal assets are
