AQA AS BUSINESS BEST RATING Paper 2 APPROVED Business 2 FINAL MAY 2023

AQA AS BUSINESS Paper 2 Business 2 Friday 26 May 2023 Afternoon Time allowed: 1 hour 30 minutes Materials For this paper you must have: • the Insert (enclosed) • a calculator. Instructions • Use black ink or black ball-point pen. • Fill in the boxes at the top of this page. • Answer all questions. • You must answer the questions in the spaces provided. Do not write outside the box around each page or on blank pages. • If you need extra space for your answer(s), use the lined pages at the end of this book. Write the question number against your answer(s). • Do all rough work in this answer book. Cross through any work you do not want to be marked. Information • The maximum mark for this paper is 80. • The marks for questions are shown in brackets. Answer all questions. Read the source in the Insert. outside the box Figure 1: Global balloon market values 2020 2021 2022 $227 million $260 million $287 million The UK balloon market accounted for 25% of the global market in 2020 and 30% of the global market in 2022. Using Figure 1, calculate the percentage increase in the size of the UK balloon market between 2020 and 2022. Give your answer to two decimal places. [3 marks] Extra space *02* Figure 2: BB financial data for 3000 units 3000 units sold Total revenue £105 000 Total fixed costs £5 700 Total variable costs £17 250 Using Figure 2, calculate the total contribution if BB only sells 1000 units. [3 marks] box Extra space Turn over for the next question Turn over ► 0 3 The price elasticity of demand for BB’s products is –0.5. Explain one benefit to BB of operating in the market with this price elasticity of demand value. [4 marks] Extra space 0 4 Analyse the impact on BB if it decides to outsource the catering function of the business. [9 marks] Extra space Turn over ► 0 5 Analyse the impact on BB’s financial performance if it decides to take the contract with the hotel. [9 marks] Extra space Zoe is considering employing a manager with a ‘produce or perish’ style of management. To what extent is this the right management style for BB to become more successful? [16 marks] box *07* Turn over ► box Extra space BB needs to raise finance to fund the new warehouse. Do you think using a bank loan or venture capital would be the better option? Justify your answer. box [16 marks] Turn over ► box Extra space