Edexcel GCSE 9-1 Business 3 Markers –
Exam Questions and Sample Answers
Explain one reason why a business would undertake market research - ✔✔To
identify and understand customer needs (1), to ensure that features of its
products/services meet customer requirements (1), which makes it likely that
the business will make more sales (1).
To identify gaps in the market (1), which would allow a business to focus on
producing products/services which were different to its competitors (1), which
would increase the chance of the business gaining sales (1).
Explain one disadvantage to a business of using an overdraft as a source of
finance - ✔✔Overdrafts can have high interest rates (1) which means payments
of a business increase (1) which is likely to reduce profit (1)
The bank can ask for the overdraft to be paid back in full whenever they wish
(1). In this case, the business may not have the funds to pay back the bank (1)
which means the business could become insolvent and subsequently fail (1)
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©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
,Explain one reason why a falling exchange rate might be good for a UK export
business - ✔✔A weaker pound makes UK exports cheaper in other countries (1)
meaning sales of UK exporting businesses are likely to increase (1) which will
increase their sales revenue (1).
A weaker pound means UK exporters can compete more effectively abroad (1).
This is because the price of their exports will be lower (1) meaning sales of UK
exporting businesses are likely to increase (1).
Explain one reason why new business ideas come about - ✔✔New business
ideas can come about due to changes in technology (1) for example the increase
in popularity of buying via e-commerce creates opportunities for businesses (1)
which may increase sales (1).
New business ideas can come about due to changes in consumer wants over
time (1) for example people today lead busier lives which creates opportunities
to provide goods/services (1) that make people's day to day lives more
convenient and easier (1).
Explain one benefit to a business of using e-commerce - ✔✔Using e-commerce
can help a business to increase sales (1), this is because a business can access a
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©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
, larger market (1), which can result in the business increasing its market share
(1).
Using e-commerce can help reduce business costs (1), this is because there is no
need for expensive retail premises (1), which can result in higher profits (1)
Explain one reward of an entrepreneur opening a new business - ✔✔Opening a
new business brings independence (1) because the entrepreneur does not have
someone else telling him/her what to do (1) which means he/she is free to
make his/her own decisions (1).
Profit is a reward (1) because the entrepreneur is entitled to all of the profits (1)
which means his/her personal wealth can increase (1).
Explain one benefit to an entrepreneur of buying a franchise to start a business -
✔✔An entrepreneur could receive support and training (1). This means they are
less likely to make poor business decisions (1), which reduces the chance of
business failure (1).
3|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
Exam Questions and Sample Answers
Explain one reason why a business would undertake market research - ✔✔To
identify and understand customer needs (1), to ensure that features of its
products/services meet customer requirements (1), which makes it likely that
the business will make more sales (1).
To identify gaps in the market (1), which would allow a business to focus on
producing products/services which were different to its competitors (1), which
would increase the chance of the business gaining sales (1).
Explain one disadvantage to a business of using an overdraft as a source of
finance - ✔✔Overdrafts can have high interest rates (1) which means payments
of a business increase (1) which is likely to reduce profit (1)
The bank can ask for the overdraft to be paid back in full whenever they wish
(1). In this case, the business may not have the funds to pay back the bank (1)
which means the business could become insolvent and subsequently fail (1)
1|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
,Explain one reason why a falling exchange rate might be good for a UK export
business - ✔✔A weaker pound makes UK exports cheaper in other countries (1)
meaning sales of UK exporting businesses are likely to increase (1) which will
increase their sales revenue (1).
A weaker pound means UK exporters can compete more effectively abroad (1).
This is because the price of their exports will be lower (1) meaning sales of UK
exporting businesses are likely to increase (1).
Explain one reason why new business ideas come about - ✔✔New business
ideas can come about due to changes in technology (1) for example the increase
in popularity of buying via e-commerce creates opportunities for businesses (1)
which may increase sales (1).
New business ideas can come about due to changes in consumer wants over
time (1) for example people today lead busier lives which creates opportunities
to provide goods/services (1) that make people's day to day lives more
convenient and easier (1).
Explain one benefit to a business of using e-commerce - ✔✔Using e-commerce
can help a business to increase sales (1), this is because a business can access a
2|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
, larger market (1), which can result in the business increasing its market share
(1).
Using e-commerce can help reduce business costs (1), this is because there is no
need for expensive retail premises (1), which can result in higher profits (1)
Explain one reward of an entrepreneur opening a new business - ✔✔Opening a
new business brings independence (1) because the entrepreneur does not have
someone else telling him/her what to do (1) which means he/she is free to
make his/her own decisions (1).
Profit is a reward (1) because the entrepreneur is entitled to all of the profits (1)
which means his/her personal wealth can increase (1).
Explain one benefit to an entrepreneur of buying a franchise to start a business -
✔✔An entrepreneur could receive support and training (1). This means they are
less likely to make poor business decisions (1), which reduces the chance of
business failure (1).
3|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
