AQA A-Level Business Paper 1 Revision
2024/2025 Exam Questions and Answers
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Why businesses exist - 🧠 ANSWER ✔✔Can make you money and you can
be your own boss
Mission - 🧠 ANSWER ✔✔a business aim expressed to make it seem
especially purposeful and motivating
Objectives - 🧠 ANSWER ✔✔SMART Specific, Measurable, Achievable,
Realistic, Time-bound
Why businesses set objectives - 🧠 ANSWER ✔✔- it is motivating to have a
goal to aim toward
- as a boss you can not make every decision
Profit - 🧠 ANSWER ✔✔Revenue - total costs
What are the 5 types of business - 🧠 ANSWER ✔✔-sole traders
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 1
STATEMENT. ALL RIGHTS RESERVED
,-private limited companies (LTD)
-Public limited companies (PLC)
-Private and public sector organisations
- non-profit organisations (charities)
Sole traders - 🧠 ANSWER ✔✔a business that is owned and operated by
one person
Private Limited Company (Ltd) - 🧠 ANSWER ✔✔A small to medium sized
company, owned by shareholders who have limited liability. The company
cannot sell its shares to the general public.
Private Limited Company Advantages - 🧠 ANSWER ✔✔-Limited liability
-Additional capital can be raised by selling shares (not to the general
public)
-Separate legal existence to the owner
-Higher business status to sole trader
Private limited company Disadvantages - 🧠 ANSWER ✔✔-You have to
publish the account information
-You need two share of £1 each
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 2
STATEMENT. ALL RIGHTS RESERVED
,Public limited company (plc) - 🧠 ANSWER ✔✔A limited company with more
that £50,000 of share capital. Any member of the public can buy shares.
Public companies must publish more detailed accounts
Public limited company Advantages - 🧠 ANSWER ✔✔-Raising capital
through public issue of shares
-Offering shares to the public spreads risk
-Banks are more likely to lend money to PLC's
-More growth and expansion opportunities
-Having PLC at the end of your business name gives a better image
-Shares are more easily transferred so shareholders are happier
-Separate legal entity to the owner
public limited company Disadvantages - 🧠 ANSWER ✔✔-More regulations
that could increase costs
-Higher level of transparency needed
-Must start with £50,000 share capital
Private sector organisations - 🧠 ANSWER ✔✔Organisations owned by
individuals or companies
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 3
STATEMENT. ALL RIGHTS RESERVED
, Public sector organisations - 🧠 ANSWER ✔✔Businesses owned by the
government.
Non-profit organisations - 🧠 ANSWER ✔✔Businesses with a motive other
than profit, may be to provide a social benefit or service to society or to
support a cause.
Share capital - 🧠 ANSWER ✔✔The total value of capital raised from
shareholders by the issue of shares
Role of Shareholders - 🧠 ANSWER ✔✔to raise important issues with the
board directors and raise funds
Why shareholders invest - 🧠 ANSWER ✔✔-Annual dividend payments
-A rise in the value of shares
Market capitalisation - 🧠 ANSWER ✔✔Number of issued shares x current
share price
Influences on the price of shares - 🧠 ANSWER ✔✔-The profit after tax of
the company x the value investors place on on those earnings
Significance of share price changes - 🧠 ANSWER ✔✔High = cheap and
easy to obtain more share capital
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 4
STATEMENT. ALL RIGHTS RESERVED
2024/2025 Exam Questions and Answers
100% Guaranteed Success | Already
Rated A+
Why businesses exist - 🧠 ANSWER ✔✔Can make you money and you can
be your own boss
Mission - 🧠 ANSWER ✔✔a business aim expressed to make it seem
especially purposeful and motivating
Objectives - 🧠 ANSWER ✔✔SMART Specific, Measurable, Achievable,
Realistic, Time-bound
Why businesses set objectives - 🧠 ANSWER ✔✔- it is motivating to have a
goal to aim toward
- as a boss you can not make every decision
Profit - 🧠 ANSWER ✔✔Revenue - total costs
What are the 5 types of business - 🧠 ANSWER ✔✔-sole traders
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 1
STATEMENT. ALL RIGHTS RESERVED
,-private limited companies (LTD)
-Public limited companies (PLC)
-Private and public sector organisations
- non-profit organisations (charities)
Sole traders - 🧠 ANSWER ✔✔a business that is owned and operated by
one person
Private Limited Company (Ltd) - 🧠 ANSWER ✔✔A small to medium sized
company, owned by shareholders who have limited liability. The company
cannot sell its shares to the general public.
Private Limited Company Advantages - 🧠 ANSWER ✔✔-Limited liability
-Additional capital can be raised by selling shares (not to the general
public)
-Separate legal existence to the owner
-Higher business status to sole trader
Private limited company Disadvantages - 🧠 ANSWER ✔✔-You have to
publish the account information
-You need two share of £1 each
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 2
STATEMENT. ALL RIGHTS RESERVED
,Public limited company (plc) - 🧠 ANSWER ✔✔A limited company with more
that £50,000 of share capital. Any member of the public can buy shares.
Public companies must publish more detailed accounts
Public limited company Advantages - 🧠 ANSWER ✔✔-Raising capital
through public issue of shares
-Offering shares to the public spreads risk
-Banks are more likely to lend money to PLC's
-More growth and expansion opportunities
-Having PLC at the end of your business name gives a better image
-Shares are more easily transferred so shareholders are happier
-Separate legal entity to the owner
public limited company Disadvantages - 🧠 ANSWER ✔✔-More regulations
that could increase costs
-Higher level of transparency needed
-Must start with £50,000 share capital
Private sector organisations - 🧠 ANSWER ✔✔Organisations owned by
individuals or companies
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 3
STATEMENT. ALL RIGHTS RESERVED
, Public sector organisations - 🧠 ANSWER ✔✔Businesses owned by the
government.
Non-profit organisations - 🧠 ANSWER ✔✔Businesses with a motive other
than profit, may be to provide a social benefit or service to society or to
support a cause.
Share capital - 🧠 ANSWER ✔✔The total value of capital raised from
shareholders by the issue of shares
Role of Shareholders - 🧠 ANSWER ✔✔to raise important issues with the
board directors and raise funds
Why shareholders invest - 🧠 ANSWER ✔✔-Annual dividend payments
-A rise in the value of shares
Market capitalisation - 🧠 ANSWER ✔✔Number of issued shares x current
share price
Influences on the price of shares - 🧠 ANSWER ✔✔-The profit after tax of
the company x the value investors place on on those earnings
Significance of share price changes - 🧠 ANSWER ✔✔High = cheap and
easy to obtain more share capital
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 4
STATEMENT. ALL RIGHTS RESERVED
