AQA
AS
BUSINESS
7131/1
Paper 1 Business 1
Version: 1.0 Final
*jun237131101*
IB/G/Jun23/E11 7131/1
For Examiner’s Use
Question Mark
Section
... [Show More] A
11
12
13
14
15
16.1
16.2
17.1
17.2
TOTAL
Friday 19 May 2023 Morning Time allowed: 1 hour 30 minutes
Materials
For this paper you must have:
• a calculator.
Instructions
• Use black ink or black ball-point pen.
• Fill in the box 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 marks for questions are shown in brackets.
• The maximum mark for this paper is 80.
Please write clearly in block capitals.
Centre number Candidate number
Surname
Forename(s)
Candidate signature
I declare this is my own work.
AS
BUSINESS
Paper 1 Business 1
2
*02*
IB/G/Jun23/7131/1
Do not write
outside the Section A box
Answer all questions in this section.
Only one answer per question is allowed.
For each question completely fill in the circle alongside the appropriate answer.
CORRECT METHOD WRONG METHODS
If you want to change your answer you must cross out your original answer as shown.
If you wish to return to an answer previously crossed out, ring the answer you now wish to select
as shown.
0 1 A company decides to rely only on decision trees to decide whether to accept a project.
If decisions are based on the financial outcome, what is the most important factor in these
decisions?
[1 mark]
A Expected value
B Initial cost
C Net gain
D Probability of success
0 2 When will a business’s corporate objectives be agreed?
[1 mark]
A After its mission and after its financial objectives
B After its mission and before its financial objectives
C Before its mission and after its financial objectives
D Before its mission and before its financial objectives
3
*03*
Turn over ►
IB/G/Jun23/7131/1
Do not write
outside the
0 3 Statement 1: ‘A founder of a small business may choose to remain as a sole trader in box
order to retain full control of decisions.’
Statement 2: ‘A founder of a small business may choose to remain as a sole trader in
order to limit his liability for debts.’
Read statements 1 and 2 and select the correct option from the following:
[1 mark]
A Statement 1 is true. Statement 2 is true.
B Statement 1 is true. Statement 2 is false.
C Statement 1 is false. Statement 2 is true.
D Statement 1 is false. Statement 2 is false.
0 4 A business manufactures one product on a large scale. If the business introduces mass
customisation, which of the following is least likely to occur?
[1 mark]
A Greater responsiveness to changes in consumer tastes
B Higher added value
C More flexible machinery
D Reduced unit costs
0 5 Statement 1: ‘Total revenue = Total costs + profit’
Statement 2: ‘Total contribution = (Contribution per unit × quantity) + fixed costs’
Read statements 1 and 2 and select the correct option from the following:
[1 mark]
A Statement 1 is true. Statement 2 is true.
B Statement 1 is true. Statement 2 is false.
C Statement 1 is false. Statement 2 is true.
D Statement 1 is false. Statement 2 is false.
4
*04*
IB/G/Jun23/7131/1
Do not write
outside the
0 6 The table below shows four different scenarios. box
Scenario Change in interest rates Change in wages
A Increase Increase
B Increase Decrease
C Decrease Increase
D Decrease Decrease
Which scenario is most likely to encourage a business to change from labour-intensive
processes to capital-intensive processes?
[1 mark]
A Scenario A
B Scenario B
C Scenario C
D Scenario D
5
*05*
Turn over ►
IB/G/Jun23/7131/1
Do not write
outside the
0 7 Figure 1 below shows a break box -even chart.
Figure 1
Which of the following changes would lead to a change of break-even output from E to F?
[1 mark]
A An increase in price and an increase in fixed costs.
B An increase in price, an increase in fixed costs and a decrease in
variable costs per unit.
C A decrease in price and a decrease in variable costs per unit.
D A decrease in price, an increase in fixed costs and a decrease in
variable costs per unit.
Turn over for the next question
6
*06*
IB/G/Jun23/7131/1
Do not write
outside the
0 8 Statement 1: ‘Introducing lean production can improve cash flow by reducing levels of box
inventory.’
Statement 2: ‘Introducing lean production can improve profitability by reducing waste.’
Read statements 1 and 2 and select the correct option from the following:
[1 mark]
A Statement 1 is true. Statement 2 is true.
B Statement 1 is true. Statement 2 is false.
C Statement 1 is false. Statement 2 is true.
D Statement 1 is false. Statement 2 is false.
0 9 Which one of the following is not an extension strategy?
[1 mark]
A Attracting new market segments
B Changing the image of a product
C Increasing spending on promotions
D Lowering unit costs
1 0 Statement 1: ‘Delegation can improve efficiency because it may allow decisions to be
taken by the employee with the most relevant skills.’
Statement 2: ‘Delegation helps to identify employees with the potential for promotion.’
Read statements 1 and 2 and select the correct option from the following:
[1 mark]
A Statement 1 is true. Statement 2 is true.
B Statement 1 is true. Statement 2 is false.
C Statement 1 is false. Statement 2 is true [Show Less]