You are on page 1of 5

QCF Specimen Question Papers

Please note that ABE will not be able to accept any queries about the individual questions in the papers. The specimen question papers are provided for information purposes only; they are intended to give candidates an indication of the types of paper that will be used to assess the QCF units and to provide a flavour of the sort of questions that might be asked. There may be minor differences between the style of the specimen question paper and that of the actual examination paper. It is essential that you look at the specimen question paper for each unit that you are taking. This is because there are various types of question paper under QCF.

Key points for all QCF question papers: All the Learning Outcomes will be assessedunder NQF only a selection of Learning Outcomes was assessed. Make sure that you read and understand the instructionsthe paper may be divided into sections; in some sections all questions will be compulsory; in others you will be offered a choice between questions. Allocate your time carefullyyou may be required to answer more questions than you would have answered under NQF. Make sure that you take account of the number of marks available for each question when deciding how to allocate your time.

Level 5 Diploma The Business Environment QCF Specimen Question Paper

1. 2.

Time allowed: 3 hours. The number of questions you have to answer is marked clearly at the top of each section. Read the instructions at the top of each section carefully. Do not answer more questions than instructed. If you are offered a choice between two questions in a section you must NOT answer both questions. The number of marks per question may vary. Marks for subdivisions of questions and the total marks for each question are shown in brackets after the question. No books, dictionaries, notes or any other written materials are allowed in this examination. Calculators, including scientific calculators, are allowed providing they are not programmable and cannot store or recall information. Electronic dictionaries and personal organisers are NOT allowed. Candidates who break ABE regulations, or commit any misconduct, will be disqualified from the examinations. Question papers must not be removed from the Examination Hall.







ABE 2011

SECTION A You must answer ALL SIX questions in this section. Questions 1, 2, 3 and 4 carry 5 marks each; questions 5 and 6 carry 10 marks each. Section A is worth 40% of the total marks available for the paper.


Describe two different ways in which an organisation may structure its activities.

(5 marks)


Briefly explain how the main stages of the business cycle impact upon business decisionmaking. (5 marks)


Explain the impact of a fall in the exchange rate on a manufacturing business exporting around the world. (5 marks) Define the term Corporate Social Responsibility (CSR) and give an example of the implementation of CSR by a business. (5 marks)



Ace Autoparts Ltd was started by Joe Smith 10 years ago, originally as a sole trader, selling car components. The business took off rapidly and, five years ago, Joe formed a limited company. He now has 10 stores across the country. (a) (b) Describe the advantages Joe gets from limited company status. Discuss reasons why a business like Joes grows. (5 marks) (5 marks) (Total 10 marks)


The UK food retail sector is dominated by four large supermarket chains. (a) (b) Identify this type of competition and describe its chief characteristics. Explain how supermarkets have barriers to entry to competitors. (5 marks) (5 marks) (Total 10 marks)

End of SECTION A Maximum for SECTION A: 40 marks

SECTION B You must answer FOUR questions in this section. All questions carry 15 marks. Section B is worth 60% of the total marks available for the paper.


Greenfoods Ltd is a medium-sized food retail outlet in a small town. Using PEST or PESTLE analysis, discuss four of the main influences from the external environment on Greenfoods Ltd. (15 marks)

Q8 (a) Compare and contrast the objectives of a private sector organisation with those of a public sector organisation. (10 marks) Outline the possible implications of privatising a publicly owned company, such as an electricity company. (5 marks) (Total 15 marks)


Q9 (a) Explain the need for government intervention to control the competitive activities of business organisations. (5 marks) Describe two ways in which governments intervene to regulate competition. (10 marks) (Total 15 marks)


Q10 A common economic objective of governments is to achieve stable prices. This involves controlling inflation. (a) (b) Explain how high levels of consumer spending may cause inflation to rise. (8 marks)

Discuss two alternative economic policies that could be used to control inflation. (7 marks) (Total 15 marks)

Q11 All countries engage in international trade and this has a big impact on their economies. (a) (b) Discuss the main advantages of free international trade. (8 marks)

In 2006, the US was involved in trade wars with the EU over steel tariffs and in dispute with China over textiles. Discuss the advantages and disadvantages of tariffs. (7 marks) (Total 15 marks)

Q12 Technology has a very big impact upon the world of business and an important effect on the level and type of investment that takes place. Using examples, discuss ways in which new technology has impacted on business. (15 marks)

End of SECTION B Maximum for SECTION B: 60 marks