9/2/2025

BUSINESS PAPER 1 MOCK

NAME-

STARTING TIME-

ENDING TIME-
 FORMULAE FOR INTERNATIONAL GCSE BUSINESS

Gross profit margin:

Gross profit = revenue – cost of sales

gross profit
Gross profit margin = X 100

Revenue

Operating profit margin:

Operating profit = gross profit – other operating expenses

operating profit
Operating profit margin = x 100 revenue

Mark up:

profit per item

Mark up = x 100
cost per item

Return on capital employed (ROCE):

operating profit
ROCE = x 100
capital employed

Current ratio:

current assets
Current ratio =
current liabilities

Acid test ratio:

current assets – inventory

Acid test ratio =
current liabilities

Turn over
 Answer ALL questions. Write your answers in the spaces provided.

Some questions must be answered with a cross in a box . If you change your mind about an answer,
put a line through the box and then mark your new answer with a cross .

1 Loaf, a bakery and cookery school, was set up by Tom Baker in Birmingham, UK. The
aim is to promote real food and healthy living. It wants to use its skilled chefs to bring
real food to the kitchens of the local community. It uses its cookery courses and bakery
to help restore the local high street. Loaf also hosts pop-up events (one-off events) in
different parts of the city where it shows off its products. Any profit made through
these events is directed towards furthering Loaf’s charitable work.

Loaf operates a scheme called ‘Waste Not’. At the end of the day Loaf donates any
leftover food to charities who distribute it to local people. In addition, Loaf provides a
recycling hub for the local community.

Loaf is a social enterprise with nine members of staff; six of whom are directors.

(a) (i) Which one of the following is a non-financial business objective?

(1)
Select one answer.

A Profit

B Sales

C Market share

D Personal satisfaction

(ii) Which one of the following is a part of the Boston Matrix?

(1)
Select one answer.

A Rising star

B Risk assessment

C Product packaging

Which one of the following is an additional payment to a basic wage?

(1)
Select one.

A Promotion
B Bonus

C Job enrichment

D Piece rate.

2
 Figure 1

(iv) Which one is the correct label for Phase 2?

(1)
Select one answer.

A Growth

B Decline

C Introduction

D Maturity

Loaf charges £165 for its day-long ‘Seafood Masterclass’ course. The cost to Loaf of running
this course is £66.

(v) What mark up has Loaf applied to this course?

(1)
Select one answer.

Turn over
 A 99%

B 150%

C 231%

D 250%

Loaf is offering some Japanese students the opportunity to take part in a two-hour
‘Bao and Dumplings’ course. The course will cost £65.

The exchange rate is £1 (Pound) = 148.86 JPY (Japanese Yen).

(vi) Which one of the following amounts would a student pay for this course in Yen?
(1)
Select one answer.

A 65.00 JPY

B 148.86 JPY

C 9 620.00 JPY

D 9 675.90 JPY

(b) Define the term capital intensive production.

(1)
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

(c) Define the term quantitative data.

(1)
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

(d)
4
 (d) State one reason why Tom Baker set up his business as a social enterprise.
(1)
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

Tom Baker is looking to increase his profits so Loaf can support more local projects.
The revenue from his pop-up events in 2016 was £23 546. In 2017 this increased by 3%.

(e) Calculate the revenue for 2017. You are advised to show your working.
(2)

(f) Explain one method a small business might use to increase its profit.
(3)
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

Turn over
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

6
 7

Turn over
2 (a) State one primary research method that Loaf could use.
(1)
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

(b) State one drawback for Loaf of poor customer service.

(1)
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

(c) Explain one benefit to a business of using e-newsletters.

(3)
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

8
(D) Explain one responsibility of the human resources function in a business.
(3)
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

(e)Explain one way in which the just in time (JIT) method of stock control might benefit
a business.
(3)
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

Turn over
Loaf would like to carry out some promotional activities to increase customer numbers for
its bakery and cookery courses.

It is considering the following two options:

Option 1: offering free bite-sized pieces of its bread and cakes to people passing its shop

Option 2: using posters to advertise Loaf in local charity shops.

(f) Justify which one of these two options Loaf should choose.
(9)
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

10
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

11

Turn over
12
3 (a) Define the term job share.
(1)
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

(b) Outline one reason why high levels of customer satisfaction might be important to Loaf.
(2)
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

Figure 2 is an extract from Loaf’s statement of comprehensive income in 2018.

£000s

Revenue 90

Gross profit 22

Other operating expenses 4

Figure 2

(c) Calculate the operating profit margin for Loaf in 2018. You are advised to show your
working.

13

Turn over
(d) Analyse how useful the information in Figure 2 is to Loaf.
(6)
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

14
Loaf is looking to increase its net cash flow.

It is considering the following two options:

Option 1: hosting pop-up events across the country

Option 2: introducing different cookery courses.

(e) Justify which one of these two options Loaf should choose.
(9)
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

15

Turn over
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

16
 17

Turn over
Loaf is considering opening a second bakery to meet the increased demand for its products and the
success of its cookery school.

Loaf is thinking of running a course on making pasta. The course will be priced at £60
per person. Variable costs will be £10. Fixed cost will be £500.

4 (a) Calculate the number of people needed to break-even for this course. You are
advised to show your workings.

18
 (b) Analyse the benefits for Loaf of employing casual staff.
(6)
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

19

Turn over
(c) Evaluate the factors that Loaf would have to consider when deciding where to locate its
second bakery. You should use the information provided as well as your own
knowledge of business.
(12)
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

20
....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

....................................................................................................................................................................................................................................................................................

21

Turn over
22