2025 AS Level Business H031/01 The local business environment (Verified Question Paper With Mark Scheme Combined June 2025)

Friday 16 May 2025 – Morning AS Level Business H031/01 The local business environment Time allowed: 1 hour 30 minutes (Verified Question Paper With Mark Scheme Combined June 2025) INSTRUCTIONS •Use black ink. •Write your answer to each question in the space provided. You can use extra paper if you need to, but you must clearly show your candidate number, the centre number and the question number(s). •Answer all the questions. •Use the Resource Booklet to answer the questions in Section B. INFORMATION •The total mark for this paper is 60. •The marks for each question are shown in brackets [ ]. •Quality of extended response will be assessed in questions marked with an asterisk (*). •This document has 16 pages. ADVICE •Read each question carefully before you start your answer. © OCR 2025 [601/4674/6] DC (SL) 352175/2 OCR is an exempt Charity Turn over Section A Put a tick () in the box next to the one correct answer for each question. 1Four stages of the product life cycle are: (a)development, globalisation, maturity, decline (b)development, growth, marketing, recession (c)development, growth, maturity, decline (d)diversification, growth, maturity, decline [1] 2A business has increased its output in relation to its inputs. Which statement must be true? (a)Capacity utilisation has increased (b)Productivity has increased (c)Profit levels have increased (d)Workforce motivation has increased [1] 3Rix Ltd is an independent convenience store. What is Rix Ltd an example of? (a)A private sector organisation that manufactures goods (b)A secondary organisation that operates nationally (c)A tertiary organisation that serves its local market (d)A third sector organisation that provides a service [1] 4What is a short-term source of finance suitable for an entrepreneur starting their first business? (a)Retained profit (b)Sale and leaseback (c)Trade credit (d)Venture capital [1] 5A business has seven employees who each work 20 days a month. Last month, a total of 28 days were lost due to illness. What was the rate of absenteeism last month? (a)5% (b)20% (c)25% (d)40% [1] 6A bakery does not have a unique selling point (USP). In which section of the bakery’s SWOT analysis should this be recorded? (a)Opportunity (b)Strength (c)Threat (d)Weakness [1] 7A business has added value to its products. What is the most likely disadvantage for a customer of this? (a)Higher prices (b)Higher quality (c)Limited availability (d)Reduced functionality [1] 8What is a social factor that may affect a retailer? (a)Advances in SMART technologies (b)Fewer customers are using cash (c)Government support for electric vehicles (d)Increases in the cost of living [1] 9What is an example of good customer service for a school? (a)A positive report in the local newspaper (b)Achieving better than expected exam results (c)Improving the students’ toilets (d)Resolving parents’ queries quickly [1] 10A business’ cash-flow forecast for July is shown in the table.