AQA A LEVEL BUSINESS PAPER 1 REAL EXAM QUESTIONS WITH
100% RATED CORRECT ANSWERS (ACCURATELY PASSED) 2025
LATEST UPDATED GET 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
-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
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
,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
Low = unlikely to raise any extra share capital
What are the 6 external factors affecting businesses - (ANSWER)-Market conditions
-Competition
-Changes in household incomes
-Changes in interest rates
-Demographic factors
-Environmental issues
, Market Conditions - (ANSWER)-The number of competitors in a particular market
-The intensity of competitiveness
-Total market available
-The rate at which the market is growing
Competition - (ANSWER)The tighter the economic and market conditions, the greater the
competitive pressures tend to be
Factors that effect household incomes - (ANSWER)-Changes in the real income of the main
income earner
-The number of people in the household that work
-The impact of government decisions on taxation and benefits
Changes in interest rates - (ANSWER)If interest rates go up, businesses and individuals spend
less. If interest rates go down, businesses and individuals spend more.
Demographic factors - (ANSWER)-Population size
-Age
-Gender
-Ethnicity
Environmental issues and fair-trade - (ANSWER)Concern for green issues and ethical issues
involved with business.
What do managers do - (ANSWER)Set objectives, organize, motivate and communicate,
measure, develop people
What are the leadership styles - (ANSWER)-Autocratic managers
100% RATED CORRECT ANSWERS (ACCURATELY PASSED) 2025
LATEST UPDATED GET 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
-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
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
,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
Low = unlikely to raise any extra share capital
What are the 6 external factors affecting businesses - (ANSWER)-Market conditions
-Competition
-Changes in household incomes
-Changes in interest rates
-Demographic factors
-Environmental issues
, Market Conditions - (ANSWER)-The number of competitors in a particular market
-The intensity of competitiveness
-Total market available
-The rate at which the market is growing
Competition - (ANSWER)The tighter the economic and market conditions, the greater the
competitive pressures tend to be
Factors that effect household incomes - (ANSWER)-Changes in the real income of the main
income earner
-The number of people in the household that work
-The impact of government decisions on taxation and benefits
Changes in interest rates - (ANSWER)If interest rates go up, businesses and individuals spend
less. If interest rates go down, businesses and individuals spend more.
Demographic factors - (ANSWER)-Population size
-Age
-Gender
-Ethnicity
Environmental issues and fair-trade - (ANSWER)Concern for green issues and ethical issues
involved with business.
What do managers do - (ANSWER)Set objectives, organize, motivate and communicate,
measure, develop people
What are the leadership styles - (ANSWER)-Autocratic managers
