Oxford Cambridge and RSA
Thursday 22 May 2025 – Afternoon
AS Level Business
H031/02 The wider business environment
Time allowed: 1 hour 30 minutes
You must have:
* 1 8 7 7 8 4 3 6 0 4 *
• the Resource Booklet
You can use:
• a calculator
* H 0 3 1 0 2 *
Please write clearly in black ink. Do not write in the barcodes.
Centre number Candidate number
First name(s)
Last name
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, centre number and the
question numbers.
• Use the Resource Booklet to answer the questions in Section B.
• Answer all the questions.
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 12 pages.
ADVICE
• Read each question carefully before you start your answer.
© OCR 2025 [601/4674/6] OCR is an exempt Charity
DC (PQ) 352188/5 Turn over
for more: tyrionpapers.com
, 2
Section A
1 Explain two reasons why the objectives of a business may need to change.
1 .......................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
2 .......................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
[4]
2 A business is considering investing in new machinery. The estimated net cash-flow for the
investment is shown in the table below.
Net cash-flow
Year
£
0 (47 000)
1 14 000
2 20 000
3 26 000
Calculate the payback period for this investment.
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
Answer ........................................................... [2]
© OCR 2025
for more: tyrionpapers.com
, 3
3 Explain what Vroom’s expectancy theory says about how individuals decide to behave.
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..................................................................................................................................................... [2]
4 When the average price of margarine increased by 10%, the demand for butter increased by 3%.
Calculate the cross elasticity of demand between the price of margarine and the quantity of butter
demanded.
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
Answer ........................................................... [2]
5 Explain two reasons why the UK government may impose barriers to international trade.
1 .......................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
2 .......................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
[4]
© OCR 2025 Turn over
for more: tyrionpapers.com
Thursday 22 May 2025 – Afternoon
AS Level Business
H031/02 The wider business environment
Time allowed: 1 hour 30 minutes
You must have:
* 1 8 7 7 8 4 3 6 0 4 *
• the Resource Booklet
You can use:
• a calculator
* H 0 3 1 0 2 *
Please write clearly in black ink. Do not write in the barcodes.
Centre number Candidate number
First name(s)
Last name
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, centre number and the
question numbers.
• Use the Resource Booklet to answer the questions in Section B.
• Answer all the questions.
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 12 pages.
ADVICE
• Read each question carefully before you start your answer.
© OCR 2025 [601/4674/6] OCR is an exempt Charity
DC (PQ) 352188/5 Turn over
for more: tyrionpapers.com
, 2
Section A
1 Explain two reasons why the objectives of a business may need to change.
1 .......................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
2 .......................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
[4]
2 A business is considering investing in new machinery. The estimated net cash-flow for the
investment is shown in the table below.
Net cash-flow
Year
£
0 (47 000)
1 14 000
2 20 000
3 26 000
Calculate the payback period for this investment.
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
Answer ........................................................... [2]
© OCR 2025
for more: tyrionpapers.com
, 3
3 Explain what Vroom’s expectancy theory says about how individuals decide to behave.
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..................................................................................................................................................... [2]
4 When the average price of margarine increased by 10%, the demand for butter increased by 3%.
Calculate the cross elasticity of demand between the price of margarine and the quantity of butter
demanded.
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
Answer ........................................................... [2]
5 Explain two reasons why the UK government may impose barriers to international trade.
1 .......................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
2 .......................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
..........................................................................................................................................................
[4]
© OCR 2025 Turn over
for more: tyrionpapers.com
