Business and it’s Environment Exam Practice Paper 1

Business Activity ✍🏽

SECTION A:   (a) 2 mark (b) 3 mark PAPER 1

(a) Define the term ‘opportunity cost’. [2]​

(b) Explain two reasons why many new businesses fail in their first year of operation. [3]

Social Enterprises ✍🏽

SECTION A:   (a) 8 mark  PAPER 1

(a) Analyse the impact of social enterprises on the development of a country. [8]

Economic Sectors ✍🏽

SECTION A:   (b) 3 mark PAPER 1

(b) Explain two advantages that a business in the public sector may have that a business in the private sector may not. [3]

Business Objectives in the Private Sector and Public Sector ✍🏽

SECTION A:   5 mark PAPER 1

Explain why the objectives of a business may change over time. [5]

Objectives and Business Decisions ✍🏽

SECTION B:   12 mark PAPER 1

(b) Discuss why the shareholders of a public limited company might not support corporate social decisions responsibility (CSR) as a business objective. [12]

Business Stakeholders ✍🏽

SECTION A:   5 mark PAPER 1

Explain how the interests of two stakeholder groups could affect the decisions of a business. [5]

The Importance and Influence of Stakeholders ✍🏽

SECTION B:  12 mark  PAPER 1

Discuss the view that a public limited company should prioritise the aims of its shareholders rather than those of other stakeholder groups. [12]

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Past Paper Business Exam Guide