AQA GCSE Business Paper 1 ACTUAL EXAM BANK WITH 100%
RATED CORRECT REAL EXAM QUESTIONS AND CORRECT
ANSWERS| GRADED A+ |2025 LATEST VERSION | 100% VERIFIED
What is the purpose of a Business? - (ANSWER)• Provide goods/services
• Meet customer needs & wants
• Aim to make profit by adding value, & pursuing objectives like growth, survival, social/ethical
goals
What are Stakeholders? - (ANSWER)• Individuals/groups with interest in activities &
performance of business.
• E.g. owners, employees, customers, suppliers, local community, government
What are Internal Stakeholders? - (ANSWER)• Stakeholders within business with objective
relating to profit, salary, job security & career progression
• E.g., owners/shareholders, managers, employees.
What are External Stakeholders? - (ANSWER)• Stakeholders outside business with varying
objectives:
• Quality products-customers, prompt payment-supplier, loan repayment-lenders, tax
revenue/legal compliance-govt, jobs/less disruption-community
What is Stakeholder Conflict? - (ANSWER)• When objectives of diff stakeholder groups clash
• e.g., owners want higher profits so lower wages/higher prices, conflicts with employees
wanting higher pay & customers wanting lower price.
What are Business Aims? - (ANSWER)• Long-term goals business wants to achieve.
• e.g.: Survival, Max profit, Growth, Increase Market Share, Ethical Objectives, Provide Quality
Service
,What are Business Objectives? - (ANSWER)• Specific, measurable, achievable, realistic, &
time-bound (SMART) targets to achieve overall business aims - provide direction and allow
progress to be measured
What are some examples of Objectives? - (ANSWER)• Increase sales revenue by 10% within
next financial year; • • Reduce staff turnover by 5% in 12 months
• Launch 2 new products in next 18 months
• Reduce carbon emissions by 15% over 3 years
What are reasons to Change Objectives? - (ANSWER)May change due to
• internal factors - new leadership, business growth stage
• external factors - economic changes like recession, new competitors, technological
advancements, new legislation, changing customer tastes
What are SMART Targets? - (ANSWER)• Framework for setting effective objectives
• Specific - clear what needs doing, Measurable - track progress, Achievable - possible to attain,
Realistic - sensible given resources/market), Time-bound - deadline set
What is a Business Plan? - (ANSWER)• Formal doc. outlining business's aims & objectives +
strategies used to achieve it. Includes details on product/service, market analysis, marketing
strategy, operations plan, financial forecasts (cash flow, profit), & management team
What is the Purpose of a Business Plan? - (ANSWER)• Crucial for start-ups to secure finance
(loans, investment) • Used internally to plan, clarify direction, monitor progress, & motivate
stakeholders
What are the Types of Business Ownership? - (ANSWER)• Legal structure of business.
• Main types: Sole Trader, Partnership, Private Limited Company (Ltd), Public Limited
Company (PLC), Social Enterprise, Franchise
,What is a Sole Trader? - (ANSWER)A business owned & controlled by 1 person. Owner is the
business legally
What are the advantages of a sole trader? - (ANSWER)• Easy/cheap to set up
• Full control over decisions
• Keep all profits
• Simple decision-making
What are the disadvantages of a sole trader? - (ANSWER)• Unlimited Liability (personal assets
at risk)
• Heavy workload/long hours
• limited access to finance
• Lack of continuity (business ends if owner stops)
• Limited skills/expertise
What is a Partnership? - (ANSWER)Business owned by 2-20 partners, sharing responsibility &
profits
What are the advantages of a Partnership? - (ANSWER)• Relatively easy to set up
• More owners = more capital available
• Wider range of skills/ideas
• Shared workload/responsibility
What are the disadvantages of a partnership? - (ANSWER)• Unlimited Liability - for most
• Potential conflict
• Shared profits
• partners legally bound by each other's actions
, What is the Deed of Partnership? - (ANSWER)• Legal agreement between partners outlining
rights & responsibilities, + profit-sharing ratios, decision-making processes, contributions, & exit
strategies.
• Reduces potential conflict
What is a Private Limited Company (Ltd)? - (ANSWER)• Incorporated business owned by
shareholders (often family/friends).
• Shares are not sold to the general public. Disadvantages: More complex/expensive to set up
(legal formalities), accounts must be published (less privacy), cannot sell shares to the general
public (limits capital raising potential compared to PLC), more regulations to follow
What are the disadvantages of an Ltd? - (ANSWER)• Limited Liability
• Easier to raise capital (than sole trader/partnership) by selling shares privately
• continuity
What are the advantages of a Ltd? - (ANSWER)• complex/expensive to set up (legal
formalities)
• accounts must be published (less privacy)
• can't sell shares to public (limits capital raising potential compared to PLC)
What is a Public Limited Company (PLC)? +advantages & disadvantages - (ANSWER)•
Incorporated business owned by shareholders; shares can be bought & sold by public on stock
exchange, Usually larger businesses.
• Advantages: Limited Liability, ability to raise substantial capital by selling shares publicly,
easier to grow/expand, increased prestige/public profile.
• Disadvantages: complex/expensive setup (legal/stock exchange fees), risk of hostile takeovers,
original owners can lose control, greater public scrutiny/media attention, accounts must be
published, potential short-term focus due to shareholder pressure for dividends
RATED CORRECT REAL EXAM QUESTIONS AND CORRECT
ANSWERS| GRADED A+ |2025 LATEST VERSION | 100% VERIFIED
What is the purpose of a Business? - (ANSWER)• Provide goods/services
• Meet customer needs & wants
• Aim to make profit by adding value, & pursuing objectives like growth, survival, social/ethical
goals
What are Stakeholders? - (ANSWER)• Individuals/groups with interest in activities &
performance of business.
• E.g. owners, employees, customers, suppliers, local community, government
What are Internal Stakeholders? - (ANSWER)• Stakeholders within business with objective
relating to profit, salary, job security & career progression
• E.g., owners/shareholders, managers, employees.
What are External Stakeholders? - (ANSWER)• Stakeholders outside business with varying
objectives:
• Quality products-customers, prompt payment-supplier, loan repayment-lenders, tax
revenue/legal compliance-govt, jobs/less disruption-community
What is Stakeholder Conflict? - (ANSWER)• When objectives of diff stakeholder groups clash
• e.g., owners want higher profits so lower wages/higher prices, conflicts with employees
wanting higher pay & customers wanting lower price.
What are Business Aims? - (ANSWER)• Long-term goals business wants to achieve.
• e.g.: Survival, Max profit, Growth, Increase Market Share, Ethical Objectives, Provide Quality
Service
,What are Business Objectives? - (ANSWER)• Specific, measurable, achievable, realistic, &
time-bound (SMART) targets to achieve overall business aims - provide direction and allow
progress to be measured
What are some examples of Objectives? - (ANSWER)• Increase sales revenue by 10% within
next financial year; • • Reduce staff turnover by 5% in 12 months
• Launch 2 new products in next 18 months
• Reduce carbon emissions by 15% over 3 years
What are reasons to Change Objectives? - (ANSWER)May change due to
• internal factors - new leadership, business growth stage
• external factors - economic changes like recession, new competitors, technological
advancements, new legislation, changing customer tastes
What are SMART Targets? - (ANSWER)• Framework for setting effective objectives
• Specific - clear what needs doing, Measurable - track progress, Achievable - possible to attain,
Realistic - sensible given resources/market), Time-bound - deadline set
What is a Business Plan? - (ANSWER)• Formal doc. outlining business's aims & objectives +
strategies used to achieve it. Includes details on product/service, market analysis, marketing
strategy, operations plan, financial forecasts (cash flow, profit), & management team
What is the Purpose of a Business Plan? - (ANSWER)• Crucial for start-ups to secure finance
(loans, investment) • Used internally to plan, clarify direction, monitor progress, & motivate
stakeholders
What are the Types of Business Ownership? - (ANSWER)• Legal structure of business.
• Main types: Sole Trader, Partnership, Private Limited Company (Ltd), Public Limited
Company (PLC), Social Enterprise, Franchise
,What is a Sole Trader? - (ANSWER)A business owned & controlled by 1 person. Owner is the
business legally
What are the advantages of a sole trader? - (ANSWER)• Easy/cheap to set up
• Full control over decisions
• Keep all profits
• Simple decision-making
What are the disadvantages of a sole trader? - (ANSWER)• Unlimited Liability (personal assets
at risk)
• Heavy workload/long hours
• limited access to finance
• Lack of continuity (business ends if owner stops)
• Limited skills/expertise
What is a Partnership? - (ANSWER)Business owned by 2-20 partners, sharing responsibility &
profits
What are the advantages of a Partnership? - (ANSWER)• Relatively easy to set up
• More owners = more capital available
• Wider range of skills/ideas
• Shared workload/responsibility
What are the disadvantages of a partnership? - (ANSWER)• Unlimited Liability - for most
• Potential conflict
• Shared profits
• partners legally bound by each other's actions
, What is the Deed of Partnership? - (ANSWER)• Legal agreement between partners outlining
rights & responsibilities, + profit-sharing ratios, decision-making processes, contributions, & exit
strategies.
• Reduces potential conflict
What is a Private Limited Company (Ltd)? - (ANSWER)• Incorporated business owned by
shareholders (often family/friends).
• Shares are not sold to the general public. Disadvantages: More complex/expensive to set up
(legal formalities), accounts must be published (less privacy), cannot sell shares to the general
public (limits capital raising potential compared to PLC), more regulations to follow
What are the disadvantages of an Ltd? - (ANSWER)• Limited Liability
• Easier to raise capital (than sole trader/partnership) by selling shares privately
• continuity
What are the advantages of a Ltd? - (ANSWER)• complex/expensive to set up (legal
formalities)
• accounts must be published (less privacy)
• can't sell shares to public (limits capital raising potential compared to PLC)
What is a Public Limited Company (PLC)? +advantages & disadvantages - (ANSWER)•
Incorporated business owned by shareholders; shares can be bought & sold by public on stock
exchange, Usually larger businesses.
• Advantages: Limited Liability, ability to raise substantial capital by selling shares publicly,
easier to grow/expand, increased prestige/public profile.
• Disadvantages: complex/expensive setup (legal/stock exchange fees), risk of hostile takeovers,
original owners can lose control, greater public scrutiny/media attention, accounts must be
published, potential short-term focus due to shareholder pressure for dividends
