Business Studies Pearson Edexcel
GCSE Topic 2.1 Exam 2025 With 100%
Correct Answers
Explain one advantage to a business of improving its environmental sustainability in terms of ethicality
(3) - correct answers ✔✔This may make the business appear more ethical (1). This may reduce pressure
group activity (1). Therefore, the brand image of the business may improve (1)
Explain one advantage to a business of improving its environmental sustainability in terms of fines (3) -
correct answers ✔✔It is now less likely that the business will have to pay fines to the government for
polluting the environment (1). As a result, the costs of the business may go down (1). This may make the
business more competitive (1)
Explain one impact that EU import protection might have on Jack Wills (3) - correct answers
✔✔Imposition of import protection controls such as tariffs will make importing hoodies more expensive
(1). Therefore, unit costs will increase (1). As a result, the profit on each Jack Wills' hoodie will go down
(1)
Explain one possible advantage to Ed's Easy Diner from having 'expanded rapidly' (3) - correct answers
✔✔Workers will now know what they have to do in their work (1). This will lead to them becoming more
motivated (1), therefore productivity will increase (1)
Some of the products the Co-op buys from countries outside the EU are subject to import protection,
such as tariffs. Describe one effect import protection might have on the Co-op (3) - correct answers
✔✔An import quota reduces the amount of food the Co-op will be able to purchase (1) this would lead
to an increase in the price (1). This causes the costs of the Co-op to increase reducing their profit margin
(1)
Explain one benefit to the Co-op of being an ethical business (3) - correct answers ✔✔Becoming an
ethical business will improve the Co-op's brand (1), this will allow it to charge more for its products (1),
this is because consumers will be willing to pay more for food like coffee that does not exploit people in
LEDCs (1)
, Give disadvantage to the Co-op of being an ethical business (6) - correct answers ✔✔Falling profits (1).
By improving its reputation for ethics, the Co-op may have to pay more for its supplies of food (1) this
will mean that its total costs will rise (1). It may not be able to recoup this by increasing the price of its
food (1), so profits decrease, which means less can be reinvested (1). This gives it a competitive
disadvantage (1)
Explain one way in which a business, such as Tesco, might be affected by a successful pressure group
campaign (3) - correct answers ✔✔A pressure group campaign could reduce Tesco's revenues (1). This is
because the pressure group will raise awareness of Tesco's activities in paying farmers low prices for
their produce (1). This might encourage consumers who care about this issue to switch to a different
supermarket (1)
Explain one benefit to The Range of using internal sources of finance for growth (3) - correct answers
✔✔Using internal finance e.g. retained profit is cheaper (1). This is because there is no interest to pay (1)
so the costs to the business are smaller (1)
Explain one drawback to Wagamama of using profit as a source of finance for expansion (3) - correct
answers ✔✔Profit may not be large enough to fund Wagamama Ltd's plan to open an extra 45
restaurants (1). Therefore, Wagamama Ltd will need to use other sources of finance to open new
restaurants (1). This could lead to an increase in costs (1)
Explain one effect the provision of maternity rights might have on Sainsburys (3) - correct answers ✔✔By
giving female workers maternity leave, Sainsbury's will have to employ temporary workers (1). These
workers may not be as good as the permanent workers (1). This will increase Sainbury's costs as they
employ lots of female workers (1)
Discuss the benefits to Mulberry of using internal source of finance to fund its expansion in terms of
interest (6) part one - correct answers ✔✔Using retained profits or sale of assets means that the firm
will not have to pay interest (1). This will decrease the costs of the firm, (1) which may lead to a more
positive cashflow (1). The effect will depend on how much internal source of finance the business has.
(1)
Discuss the benefits to Mulberry of using internal source of finance to fund its expansion in terms of risk
(6) part two - correct answers ✔✔Using internal benefits can lower risk. (1) This is important as the
fashion market can change rapidly (1). This makes success and profit from expansion more likely (1)
GCSE Topic 2.1 Exam 2025 With 100%
Correct Answers
Explain one advantage to a business of improving its environmental sustainability in terms of ethicality
(3) - correct answers ✔✔This may make the business appear more ethical (1). This may reduce pressure
group activity (1). Therefore, the brand image of the business may improve (1)
Explain one advantage to a business of improving its environmental sustainability in terms of fines (3) -
correct answers ✔✔It is now less likely that the business will have to pay fines to the government for
polluting the environment (1). As a result, the costs of the business may go down (1). This may make the
business more competitive (1)
Explain one impact that EU import protection might have on Jack Wills (3) - correct answers
✔✔Imposition of import protection controls such as tariffs will make importing hoodies more expensive
(1). Therefore, unit costs will increase (1). As a result, the profit on each Jack Wills' hoodie will go down
(1)
Explain one possible advantage to Ed's Easy Diner from having 'expanded rapidly' (3) - correct answers
✔✔Workers will now know what they have to do in their work (1). This will lead to them becoming more
motivated (1), therefore productivity will increase (1)
Some of the products the Co-op buys from countries outside the EU are subject to import protection,
such as tariffs. Describe one effect import protection might have on the Co-op (3) - correct answers
✔✔An import quota reduces the amount of food the Co-op will be able to purchase (1) this would lead
to an increase in the price (1). This causes the costs of the Co-op to increase reducing their profit margin
(1)
Explain one benefit to the Co-op of being an ethical business (3) - correct answers ✔✔Becoming an
ethical business will improve the Co-op's brand (1), this will allow it to charge more for its products (1),
this is because consumers will be willing to pay more for food like coffee that does not exploit people in
LEDCs (1)
, Give disadvantage to the Co-op of being an ethical business (6) - correct answers ✔✔Falling profits (1).
By improving its reputation for ethics, the Co-op may have to pay more for its supplies of food (1) this
will mean that its total costs will rise (1). It may not be able to recoup this by increasing the price of its
food (1), so profits decrease, which means less can be reinvested (1). This gives it a competitive
disadvantage (1)
Explain one way in which a business, such as Tesco, might be affected by a successful pressure group
campaign (3) - correct answers ✔✔A pressure group campaign could reduce Tesco's revenues (1). This is
because the pressure group will raise awareness of Tesco's activities in paying farmers low prices for
their produce (1). This might encourage consumers who care about this issue to switch to a different
supermarket (1)
Explain one benefit to The Range of using internal sources of finance for growth (3) - correct answers
✔✔Using internal finance e.g. retained profit is cheaper (1). This is because there is no interest to pay (1)
so the costs to the business are smaller (1)
Explain one drawback to Wagamama of using profit as a source of finance for expansion (3) - correct
answers ✔✔Profit may not be large enough to fund Wagamama Ltd's plan to open an extra 45
restaurants (1). Therefore, Wagamama Ltd will need to use other sources of finance to open new
restaurants (1). This could lead to an increase in costs (1)
Explain one effect the provision of maternity rights might have on Sainsburys (3) - correct answers ✔✔By
giving female workers maternity leave, Sainsbury's will have to employ temporary workers (1). These
workers may not be as good as the permanent workers (1). This will increase Sainbury's costs as they
employ lots of female workers (1)
Discuss the benefits to Mulberry of using internal source of finance to fund its expansion in terms of
interest (6) part one - correct answers ✔✔Using retained profits or sale of assets means that the firm
will not have to pay interest (1). This will decrease the costs of the firm, (1) which may lead to a more
positive cashflow (1). The effect will depend on how much internal source of finance the business has.
(1)
Discuss the benefits to Mulberry of using internal source of finance to fund its expansion in terms of risk
(6) part two - correct answers ✔✔Using internal benefits can lower risk. (1) This is important as the
fashion market can change rapidly (1). This makes success and profit from expansion more likely (1)
