Edexcel GCSE (9-1) Business Theme 1 Investigating small business (1BSO/01)
Specification link Questions:
1.1 Enterprise and entrepreneurship
1.1.1 - The dynamic Why new business ideas
nature of business come about:
 Changes in
technology
 Changes in what
consumers want
 Products and services
becoming obsolete
How new ideas come
about:
 Original ideas
 Adapting existing
ideas
1.1.2 – Risk and The impact of risk and
reward reward on business
activity
 Risk: business failure,
financial loss, lack of
security
 Reward: business
success, profit,
independence
1
Answered?
Mark?
1st Redraft
Tutor2U Paper 1b:
 Explain one reason why new business ideas come about (3 marks)
 Explain one benefit to a business of using e-commerce (3 marks)
APT Sub Theme Test:
 Discuss the reason why new business ideas may come about (6 marks)
 Explain one reason why new business ideas come about (3 marks)
 Explain one way in which new business ideas come about (3 marks)
A-Z Business Set 2 Paper 1:
 Explain one concern a business might have about a key product becoming obsolete (3 marks)
 Explain one benefit to a business of making use of original ideas (3 marks)
SAM Set 1:
 Explain one way an entrepreneur might identify a new business idea (3 marks)
SAM Set 2:
 Analyse the impact on Zoella Beauty of changes in what consumers want (6 marks)
Tutor2U Paper 1b:
 Explain one reward of an entrepreneur opening a new business (3 marks)
APT Sub Theme Test:
 Explain one reward that entrepreneurs may enjoy from starting a new business (3 marks)
A-Z Business Set 2 Paper 1:
 Discuss what a small business owner should consider when weighing up the risks against the rewards of
expanding into a different town (6 marks)
A-Z Business Set 3 Paper 1:
 Explain one reason why an entrepreneur may see independence as a reward from business activity (3
marks)
SAM Set 1:
 Outline one benefit to Jerry and Shelley of Frog Bikes being successful (2 marks)
SAM Set 2:
 Explain one risk an entrepreneur takes when starting a new business (3 marks)

Specification link
1.1 Enterprise and entrepreneurship
1.1.3 – The role of The role of business
business enterprise enterprise and the
purpose of business
activity:
 To produce goods or
services
 To meet customer
needs
 To add value:
convenience,
branding, quality,
design, unique selling
points
The role of
entrepreneurship:
 An entrepreneur:
organises resources,
makes decisions,
takes risks
1.2 Spotting a business opportunity
1.2.1 Customer Identifying and
needs understanding customer
needs:
 What customer
needs are: price,
2
Edexcel GCSE (9-1) Business Theme 1 Investigating small business (1BSO/01)
Questions: Answered?
Mark?
1st Redraft
2019:
 Outline one risk taken by the owners when starting Last Course Patisserie (2 marks)
Tutor2U Paper 1b:
 Explain one method a business could use to add value to its products (3 marks)
Tutor2U Paper 1a:
 Evaluate whether Dave has the entrepreneurial skills required to make the business a success. You should
use the information provided as well as your knowledge of business (12 marks)
APT Sub Theme Test:
 Explain one role of a business enterprise (3 marks)
 Explain one way in which a business can add value to its product or service (3 marks)
 Explain one reason why it’s important for a business to add value (3 marks)
 Discuss the potential risks an entrepreneur should consider when deciding whether or not to start a
business (6 marks)
SAM Set 2:
 Analyse the benefit to Zoella Beauty of adding value (6 marks)
Tutor2U Paper 1b:
 Explain one reason why a business needs to understand its customer’s needs (3 marks)
Tutor2U Unit Assessment 1.1& 1.2:
 Discuss the benefit to a small business of identifying and understanding customer need (6 marks)
APT Sub Theme Test:
 Edexcel GCSE (9-1) Business Theme 1 Investigating small business (1BSO/01)

Specification link Questions: Answered?

1.1 Enterprise and entrepreneurship Mark?

1st Redraft
quality, choice,  Explain one need that customers expect businesses to satisfy (3 marks)
convenience  Explain one reason why it’s important for a business to identify and understand customers (3 marks)
 The importance of SAM Set 2:
identifying and  Outline one way that Zoella Beauty meets customer needs (2 marks)
understanding 2019:
customers:  Explain one benefit to a small business of understanding customer needs (3 marks)
generating sales,
business survival
1.2.2 Market The purpose of market Old GCSE Answer booklet:
research research:  Explain how qualitative market research might allow a business to improve its marketing mix (3 marks)
 To identify and Tutor2U Paper 1b:
understand customer  Explain one reason why a business would undertake market research (3 marks)
needs Tutor2U Unit Assessment 1.1 & 1.2:
 To identify gaps in  Analyse the reason why Caroline conducted market research (6 marks)
the market APT Sub Theme Test:
 To reduce risk  Explain one purpose of market research when starting a new business (3 marks)
 To inform business  Explain one reason why the reliability of market research data is important when starting a new business (3
decision marks)
 Discuss the methods of primary research an entrepreneur could use to identify and understand customer
Methods of market needs (6 marks)
research: APT End of Theme Test 1:
 Primary research:  Explain one method of secondary research a business might use to inform business decisions (3 marks)
survey, APT End of Theme Test 2:
questionnaire, focus  Explain one way in which social media could be used to collect market research data (3 marks)
group, observation A-Z Business Set 1 Paper 1:
 Secondary research:  Explain one advantage to a business of using primary research (3 marks)
internet, market  Analyse the benefit to advertisers of using Unruly compared with traditional focus groups (6 marks)
reports, government A-Z Business Set 2 Paper 1:
reports  Explain one reason why an entrepreneur may want to use social media as a way to gather secondary

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 Edexcel GCSE (9-1) Business Theme 1 Investigating small business (1BSO/01)

Specification link Questions: Answered?

1.1 Enterprise and entrepreneurship Mark?

1st Redraft
The use of data in market research information (3 marks)
research:  Analyse whether Claire’s use of market research will have reduced her risks in opening her ice cream
 Qualitative and business (6 marks)
quantitative data A-Z Business Set 3 Paper 1:
 The role of social  Explain one advantage to a business of using primary research (3 marks)
media in collecting SAM Set 1:
market research data  Explain one benefit to a business of carrying out market research (3 marks)
 The importance of  Explain one way in which social media can be used to collect market research data (3 marks)
the reliability of 2019:
market research data  Explain one disadvantage to a small business of using qualitative data for market research (3 marks)
 State one benefit to Last Course Patisserie of conducting secondary market research (1 mark)
1.2.3 Market How businesses use Tutor2U Paper 1b:
segmentation market segmentation to  Explain one benefit to a business of using a market map (3 marks)
target new customers: Tutor2U Paper 1a:
 Identifying market  State one way in which Dave could segment the market for his business (1 mark)
segments: location, SAMs:
demographics,  Explain one benefit to a business of using a market map (3 marks)
lifestyle, income, age APT Sub Theme Test:
 Market mapping to  Give two ways in which a business might use market mapping (2 marks)
identify a gap in the  Explain one way in which a business might segment the market (3 marks)
market and the Tutor2U Unit Assessment 1.1 & 1.2:
competition  Explain one method of market segmentation a business could use (3 marks)
SAM Set 1:
 Outline one market segment that Frog Bikes targets with its products (2 marks)
SAM Set 2:
 Explain one reason why a business could use a market map (3 marks)
2019:
 Explain one way a small business could use market segmentation to target customers (3 marks)
1.2.4 The Understanding the Tutor2U Paper 1b:

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 Edexcel GCSE (9-1) Business Theme 1 Investigating small business (1BSO/01)

Specification link Questions: Answered?

1.1 Enterprise and entrepreneurship Mark?

1st Redraft
competitive competitive environment  Explain one disadvantage to a business of operating in a competitive environment (3 marks)
environment  Strengths, Tutor2U Paper 1a:
weaknesses of  Outline one-way competition might impact on Dave’s business (2 marks)
competitors based APT Sub Theme Test:
on price, quality,  Give two factors customers are likely to consider when choosing between competing businesses’ products
location, product (2 marks)
range and customer  Explain one way in which operating in a competitive environment may impact on a business’s decision
service making (3 marks)
 Impact of APT End of Theme Test 2:
competition on  Discuss ways in which operating in a competitive environment may impact on a business’s decision making
business decision (6 marks)
making A-Z Business Set 3 Paper 1:
 Explain one concern a business might have about the arrival of a new competitor (3 marks)

 Discuss what a small business owner should consider when facing an increasingly tough competitive
environment (6 marks)
SAM Set 1:
 Explain one impact on a small business of operating in a competitive environment (3 marks)

1.3 Putting a business idea into practice

1.3.1 Business aims What business aims and Tutor2U Paper 1b:
and objectives business objectives are.  Explain one reason why a start-up business would have survival as an aim in its first year of trading (3
marks)
Business aims and  Outline one benefit to Online Book Selling of having a social objective (2 marks)
objectives when starting APT Sub Theme Test:

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 Edexcel GCSE (9-1) Business Theme 1 Investigating small business (1BSO/01)

Specification link Questions: Answered?

1.1 Enterprise and entrepreneurship Mark?

1st Redraft
up:  Explain one reason why making a profit is a key business objective (3 marks)
 Financial aims and  Explain one reason why aims and objectives differ between businesses (3 marks)
objectives: survival, SAM Set 1:
profit, sales, market  Explain one possible objective of employees within a business (3 marks)
share, financial 2019:
security  Explain one possible non-financial aim an entrepreneur may have when starting a small business (3 marks)
 Non-financial aims
and objectives: social
objectives, personal
satisfaction,
challenge,
independence and
control

Why business aims and

objectives differ between
businesses.
1.3.2 Business The concept and APT Sub Theme Test:
revenues, costs and calculation of:  Explain one way in which a business can reduce the amount needed to be sold to breakeven (3 marks)
profits  Revenue  Explain the impact on a business’s breakeven level of output if fixed costs increased (3 marks)
 Fixed and variable APT End of Theme Test 1:
costs  Explain the impact on a business’s breakeven level of output if the business decided to increase the unit
 Total costs selling price of its products (3 marks)
 Profit and loss A-Z Business Set 1 Paper 1:
 Interest  Explain one method a business could use to boost its margin of safety (3 marks)
 Explain one problem faced by a business that is operating below its break-even point (3 marks)
Interpretation of break-
even diagrams:
 The impact of

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 Edexcel GCSE (9-1) Business Theme 1 Investigating small business (1BSO/01)

Specification link Questions: Answered?

1.1 Enterprise and entrepreneurship Mark?

1st Redraft
changes in revenue
and costs
 Break-even level of
output
 Margin of safety
 Profit and loss
1.3.3 Cash and The importance of cash to Tutor2U Paper 1b:
cash-flow a business:  Analyse one benefit to Online Book Selling to having a positive cash flow (6 marks)
 To pay suppliers, Tutor2U Unit Assessment 1.3:
overheads and  Analyse the importance of cash to Stuart’s proposed karting business (6 marks)
employees. APT Sub Theme Test:
 To prevent business Explain one reason why cash is important to a business (3 marks)
failure (insolvency). APT End of Theme Test 2:
 The difference  Explain one reason why the amount of profit made and cash held by a business at a particular moment in
between cash and time, may not be the same (3 marks)
profit.  Explain one reason why a business owner would produce a cash flow forecast (3 marks)
2019:
Calculation and  Discuss the importance of cash to the survival of a small business (6 marks)
interpretation of cash-
flow forecasts:
 Cash inflows
 Cash outflows
 Net cash-flow
 Opening and closing
balances
1.3.4 Sources of Sources of finance for a Tutor2U Paper 1b:
finance start-up or established  Explain one benefit to a business of using crowd funding as a source of finance (3 marks)
small business:  Explain one drawback to a business of using debt as a way of financing growth (3 marks)
 Short-term sources:  Explain one disadvantage to a business of using an overdraft as a source of finance (3 marks)

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 Edexcel GCSE (9-1) Business Theme 1 Investigating small business (1BSO/01)

Specification link Questions: Answered?

1.1 Enterprise and entrepreneurship Mark?

1st Redraft
overdraft and trade SAMs:
credit  Analyse the impact on Meringue of using a bank loan to pay for the contactless payment system (6 marks)
 Long-term sources: Tutor2U Unit Assessment 1.3:
personal savings,  Explain one difficulty a start-up business could experience when planning to use trade credit as a source of
venture capital, share finance (3 marks)
capital, loans, APT Sub Theme Test:
retained profit and  Explain one short-term method of finance for a start-up or established small business (3 marks)
crowd funding  Discuss the reason why an established business might prefer to use retained profit over a bank loan to fund
the business’s expansion (6 marks)
APT End of Theme Test 1:
 Explain one long-term method of finance for a start-up or established small business (3 marks)
A-Z Business Set 3 Paper 1:
 Explain one benefit to a business of obtaining credit from a large supplier (3 marks)
 Analyse the benefit to Vibe of using crowdsourcing as a means of finance (6 marks)
SAM Set 2:
 Explain one disadvantage to a small business of using an overdraft as a source of finance (3 marks)
 State one impact on POD Point of using crowd funding as a source of finance (1 mark)

1.4. Making the business effective

1.4.1 The options The concept of limited Tutor2U Paper 1b:

for start-up and liability:  Explain one disadvantage to a sole trader of having unlimited liability (3 marks)
small businesses  Limited and  Explain one advantage to business owners of having limited liability (3 marks)
unlimited liability. Tutor2U Paper 1a:
 The implications for  Discuss the likely drawback to a start- up business of setting up and running as a franchise operation (6
the business marks)
owner(s) of limited  Outline one benefit to Niya and Paul of operating Chicken & Grill as a partnership (2 marks)
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 Edexcel GCSE (9-1) Business Theme 1 Investigating small business (1BSO/01)

Specification link Questions: Answered?

1.1 Enterprise and entrepreneurship Mark?

1st Redraft
and unlimited SAMs:
liability.  Sally is considering whether or not to buy a franchise to start up on her own. Justify whether or not Sally
should buy a franchise (9 marks)
The types of business APT Sub Theme Test:
ownership for start-ups:  Explain one advantage of limited liability to the shareholders of a private limited company (3 marks)
 Sole trader,  Explain one advantage of a sole trader business over a partnership or private limited company (3 marks)
partnership, private  Explain one reason why a person may choose to start up and run a franchise operation, rather than
limited company. choosing to own and run a business completely independently (3 marks)
 The advantages and APT End of Theme Test 2:
disadvantages of  Explain one advantage of a private limited company over a sole trader business or partnership (3 marks)
each type of business A-Z Business Set 1 Paper 1:
ownership.  Explain one benefit to a business of forming a private limited company (3 marks)
SAM Set 1:
The option of starting up  Explain one benefit to an entrepreneur of starting as a private limited company (3 marks)
and running a franchise SAM Set 2:
operation:  Discuss the impact on a business of having limited liability (6 marks)
 The advantages and 2019:
disadvantages of  Explain one benefit to an entrepreneur of buying a franchise to start a business (3)
franchising.  Analyse the impact on Last Course Patisserie of operating as a private limited company (6 marks)
1.4.2 Business Factors influencing Tutor2U Paper 1b:
location business location:  Outline one factor that Dhana should consider when deciding upon the location of the warehouse (2 marks)
 Proximity to: market, Tutor2U Paper 1a:
labour, materials and  Outline one way in which Chicken and Grill’s location might impact on the business (2 marks)
competitors SAMs:
 Nature of the  Discuss what a small business owner should consider when deciding upon the location for their business (6
business activity marks)
 The impact of the APT Sub Theme Test:
internet on location  Explain one factor an entrepreneur should consider when deciding upon a suitable location for their
decisions: e- business (3 marks)

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 Edexcel GCSE (9-1) Business Theme 1 Investigating small business (1BSO/01)

Specification link Questions: Answered?

1.1 Enterprise and entrepreneurship Mark?

1st Redraft
commerce and/or APT End of Theme Test 2:
fixed premises  Explain one way in which the Internet impacts on location decisions (3 marks)
A-Z Business Set 3 Paper 1:
 Explain one benefit to a business of proximity to competitors (3 marks)
1.4.3 The What the marketing mix Tutor2U Paper 1b:
marketing mix is and the importance of  Discuss the likely impact of changing customer needs on the marketing mix of a business (6 marks)
each element:  Evaluate whether Jim and Susan’s marketing mix is likely to be a success. You should use the information
 Price, product, provided as well as your knowledge of business (12 marks)
promotion, place SAMs:
 Outline one method of promotion that would be appropriate for Meringue (2 marks)
How the elements of the  Analyse the impact on Meringue of allowing customers to order their food online in advance (6 marks)
marketing mix work APT Sub Theme Test:
together:  Explain one way in which changing consumer needs might impact on a business’s marketing mix (3 marks)
 Balancing the  Discuss reasons why a business might choose to sell direct to customers through a website with e-
marketing mix based commerce facilities, as opposed to through fixed (physical ‘bricks and mortar’) premises (6 marks)
on the competitive APT End of Theme Test 1:
environment.  Explain one disadvantage of selling via a website with e-commerce facilities compared to selling through
 The impact of fixed (physical ‘bricks and mortar’) premises (3 marks)
changing consumer APT End of Theme Test 2:
needs on the  Explain one reason why getting the price ‘right’ is so important to a business’s success (3 marks)
marketing mix. A-Z Business Set 1 Paper 1:
 The impact of  Explain one drawback to a business of distributing only through e-commerce (3 marks)
technology on the A-Z Business Set 2 Paper 1:
marketing mix: e-  Explain one benefit to a business of basing its marketing mix on the competitive environment (3 marks)
commerce, digital  Analyse how technology might influence Soft Serve’s marketing mix (6 marks)
communication 2019:
 Outline one reason why Aphrodite’s range of stock could give it an advantage over its competitors (2 marks)
 Evaluate the impact of e-commerce on Aphrodite’s marketing mix. You should use the information provided
as well as your knowledge of business (12 marks)

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 Edexcel GCSE (9-1) Business Theme 1 Investigating small business (1BSO/01)

Specification link Questions: Answered?

1.1 Enterprise and entrepreneurship Mark?

1st Redraft
1.4.4 Business The role and importance Tutor2U Paper 1b:
plans of a business plan:  Explain one reason why an entrepreneur would produce a business plan (3 marks)
 To identify: the Tutor2U Paper 1a:
business idea;  Identify one element Dave should include in his business plan (1 mark)
business aims and APT Sub Theme Test:
objectives; target  Give two components of a business plan (2 marks)
market (market  Explain one reason why an entrepreneur would produce a business plan (3 marks)
research); forecast 2019:
revenue, cost and  Explain one reason why it is important to include financial information in a business plan (3 marks)
profit; cash-flow
forecast; sources of
finance; location;
marketing mix.

The purpose of planning

business activity:
 The role and
importance of a
business plan in
minimising risk and
obtaining

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Specification link
1.1 Enterprise and entrepreneurship
1.5 Understanding external influences on business
1.5.1 Business Who business
stakeholders stakeholders are and
their different objectives:
 Shareholders
(owners), employees,
customers,
managers, suppliers,
local community,
pressure groups, the
government
Stakeholders and
businesses:
 How stakeholders are
affected by business
activity.
 How stakeholders
impact business
activity.
 Possible conflicts
between stakeholder
1.5.2 Technology Different types of
technology used by
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Edexcel GCSE (9-1) Business Theme 1 Investigating small business (1BSO/01)
Questions: Answered?
Mark?
1st Redraft
Tutor2U Paper 1b:
 Explain one possible conflict than can exist between stakeholders of a business (3 marks)
 Outline one possible conflict that could exist between stakeholders of Jim and Susan’s business (2 marks)
Tutor2U Unit Assessment 1.5:
 Explain one possible objective that customers would have as a stakeholder group of a business (3 marks)
APT Sub Theme Test:
 Explain one way in which stakeholders can impact on business activity (3 marks)
 Discuss a possible conflict that can exist between stakeholders of a business (6 marks)
APT End of Theme Test 1:
 Explain one way in which a stakeholder of a business might be affected by the business’s expansion (3
marks)
A-Z Business Set 3 Paper 1:
 Analyse the benefits to stakeholders of the service Vibe is providing (6 marks)
2019:
 Outline one impact on a stakeholder group of Last Course Patisserie if it relocates to new premises (2
marks)
Tutor2U Paper 1b:
 Explain one benefit to a business of using technology in its payment systems (3 marks)
 Edexcel GCSE (9-1) Business Theme 1 Investigating small business (1BSO/01)

Specification link Questions: Answered?

1.1 Enterprise and entrepreneurship Mark?

1st Redraft
and business business:  Explain one benefit to a business of using e-commerce (3 marks)
 E-commerce  Analyse the impact developments in technology might have on Online Book Selling (6 marks)
 Social media Tutor2U Paper 1a:
 Digital  Analyse the impact on Chicken & Grill of using social media to promote the home delivery service (6 marks)
communication APT Sub Theme Test:
 Payment systems  Explain one way in which digital communication can impact on a business’s marketing mix (3 marks)
Tutor2U Unit Assessment 1.5:
How technology  Discuss the benefit to a business of using social media (6 marks)
influences business APT End of Theme Test 1:
activity in terms of:  Explain one way in which the use of an electronic payment system might improve the performance of a
 Sales business (3 marks)
 Costs A-Z Business Set 3 Paper 1:
 Marketing mix  Explain one benefit to a business from using digital communication (3 marks)
 Outline one way in which Vibe has benefited from the use of social media (2 marks)
SAM Set 1:
 Discuss the benefit to a business of using e-commerce (6 marks)
 Analyse the impact on Frog Bikes of using social media to promote its products (6 marks)
SAM Set 2:
 Explain one benefit to a small business of using social media as a method of communicating with customers
(3 marks)
 Outline one way that Zoella Beauty could use digital communication (2 marks)
1.5.3 Legislation The purpose of Tutor2U Paper 1a:
and business legislation:  Analyse the impact of consumer legislation on Niya and Paul’s business (6 marks)
 Principles of APT Sub Theme Test:
consumer law:  Give two basic rights of consumers (2 marks)
quality and consumer  Explain one way in which employment legislation impacts on businesses (3 marks)
rights A-Z Business Set 1 Paper 1:
 Principles of  Analyse the benefit to Unruly of treating men and women equally at work (6 marks)
employment law: A-Z Business Set 2 Paper 1:

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 Edexcel GCSE (9-1) Business Theme 1 Investigating small business (1BSO/01)

Specification link Questions: Answered?

1.1 Enterprise and entrepreneurship Mark?

1st Redraft
recruitment, pay,  Explain one advantage to a business of taking care over health and safety (3 marks)
discrimination, and A-Z Business Set 3 Paper 1:
health and safety  Outline the possible impact of consumer law on the running of the Real Junk Food Café (2 marks)
SAM Set 1:
The impact of legislation  Analyse the impact on Frog Bikes of the legislation it has to comply with when producing and selling its
on businesses: bikes (6 marks)
 Cost SAM Set 2:
 Consequences of  Explain one benefit to employees of employment law (3 marks)
meeting and not
meeting these
obligations.
1.5.4 The economy The impact of the Tutor2U Paper 1b:
and business economic climate on  Explain one disadvantage to a business of an increase in interest rates (3 marks)
businesses:  Explain one reason why a falling exchange rate might be good for a UK export business (3 marks)
 Unemployment,  Explain how a strengthening of the pound against other currencies might affect a UK export business (3
changing levels of marks)
consumer income, SAMs:
inflation, changes in  Outline one way in which the economic climate might impact Sally’s business (2 marks)
interest rates, APT Sub Theme Test:
government taxation,  Explain one way in which unemployment might impact on a business (3 marks)
changes in exchange  Explain one way in which a rise in interest rates might affect a business (3 marks)
rates Tutor2U Unit Assessment 1.5:
 Analyse the possible impact on Treeatholon Ltd of changes in the economic climate (6 marks)
A-Z Business Set 1 Paper 1:
 Discuss what a small business owner should consider when there’s a sharp increase in interest rates (6
marks)
A-Z Business Set 2 Paper 1:
 Explain one benefit to a business of a fall in the country’s exchange rate (3 marks)
SAM Set 2:

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 Edexcel GCSE (9-1) Business Theme 1 Investigating small business (1BSO/01)

Specification link Questions: Answered?

1.1 Enterprise and entrepreneurship Mark?

1st Redraft
 Explain one impact on a small business of a reduction in government taxation (3 marks)
1.5.5 External The importance of APT Sub Theme Test:
influences external influences on  Explain one way in which a business might respond to a rise in interest rates (3 marks)
business: APT End of Theme Test 2:
 introducing the idea  Explain one way in which changes in government taxation may impact on a business (3 marks)
that some factors SAM Set 1:
beyond the business  Outline one impact of changing levels of consumer incomes on Good and Proper Tea (2 marks)
can impact on the 2019:
business  Analyse the likely impact on Last Course Patisserie of this changing level of consumer income (6 marks)

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