Instructions:
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Carefully review all given instructions and past paper guidelines before starting each practice session.
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Attempt the past paper questions independently first, just as in an actual exam environment.
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Use a notebook or exam-style sheets to write your answers. Ensure your work is neat, clearly labeled with question numbers, and follows proper exam format.
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After completing each section, check your answers using the provided marking schemes and examiner reports (if available).
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Review your mistakes and rewrite incorrect answers to improve accuracy and exam technique.
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If you find any questions difficult or unclear, watch the video given below for that paper. In that video, each paper is discussed in detail.
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If you still face difficulties or have doubts after watching the video, note them down and discuss them with your instructor or course coordinator for clarification.
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Revise question-solving strategies and repeat similar past paper questions to strengthen your understanding and performance.
Click Here to download the Video Handout
Alright class, today we are going to look at the Cambridge AS Level Business Paper 1 from May and June 2025. This paper tests how well you can define key business terms, explain concepts, and apply them in short, clear answers. You will answer all questions in Section A and then choose one question from Section B. Let’s go through each part step by step so you can see how to structure your answers for maximum marks.
Starting with Question 1(a), it asked you to define mission statement. A mission statement is a written declaration of what a business stands for, its purpose, and its main aims. For example, a company might say, “To deliver affordable, sustainable fashion globally.” That short, clear sentence would earn both marks because it identifies the purpose and direction of the business.
In Question 1(b), you needed to explain one disadvantage of having corporate social responsibility, or CSR, as a business objective. The correct idea is that CSR can increase operational costs. For instance, a company investing in eco-friendly packaging or community projects might face lower short-term profits. Always link your explanation to the effect on the business. That connection is what moves your answer from one mark to all three.
Next, Question 2(a) asked about involuntary redundancy. This occurs when an employee loses their job because the position no longer exists, usually due to restructuring or cost cutting. It is not a voluntary choice by the employee. Keep your definition short and precise to score full marks.
In Question 2(b), the focus was on employee development and multi-skilling. A strong answer would mention job rotation or cross-functional training. For example, if a customer service worker learns how to handle sales tasks, they become more versatile and useful to the business. Explain how this improves flexibility and motivation, and you will get all three marks.
Moving to Question 3(a), the term inventory re-order level refers to the point when a business needs to order new stock to avoid running out before the next delivery.
Then Question 3(b) asked for one advantage to a business of holding buffer inventory. The best way to answer this is to explain that buffer inventory acts as a safety stock that prevents production delays or lost sales when demand suddenly increases or when suppliers are late with deliveries. It allows the business to continue operating smoothly and maintain customer satisfaction. That clear cause-and-effect explanation will get you all three marks.
Question 4 was about cost-based pricing. Here, you needed to analyse why a business might choose this method. The main reason is to make sure all costs are covered and a profit margin is added. For example, if each unit costs 10 dollars to make, the business might set the price at 12 dollars to secure a 20 percent margin. This gives consistency and ensures no losses. However, the limitation is that it ignores competitors and customer demand, which could make prices less competitive. Always include one limitation for analysis marks.
Now let’s move to Section B, where you choose one question to answer in detail.
If you chose Question 5(a), you had to analyse two disadvantages of an autocratic management style. The first disadvantage is low motivation, because employees have little input in decision-making and may feel undervalued. The second is poor communication and trust. A strict top-down approach often creates barriers between managers and workers, which can hurt morale and productivity. To get the full eight marks, you must explain both points clearly and link them to their consequences.
Question 5(b) asked whether managers contribute less to business performance in a hospital than medical employees. Doctors and nurses are vital because they directly provide care and affect patient satisfaction. However, managers are also essential for budgeting, coordination, and ensuring compliance with regulations. A good conclusion would say that both groups are interdependent. Without effective management, even skilled medical staff could not perform efficiently, so both are equally important to overall success.
If you selected Question 6(a), you analysed two advantages of sale and leaseback as a source of finance. The first advantage is immediate cash inflow, which improves liquidity and can be used for expansion or debt repayment. The second is continued use of the same assets, such as buildings or equipment, which allows business operations to continue smoothly while freeing up capital.
Finally, Question 6(b) asked whether using budgets is the most effective way to monitor a hotel’s performance. Budgets help managers plan, control costs, and compare actual results with targets. For example, they can track food, staffing, or maintenance costs against expected figures. However, budgets can also be inflexible or inaccurate in industries like hospitality where demand changes seasonally. You could conclude that budgets are very useful for financial control, but they should be combined with non-financial indicators such as customer satisfaction and occupancy rates for a complete performance view.
Before we end, let’s quickly talk about mark allocation. Two-mark questions test definitions and knowledge. Three- and five-mark questions need short explanations with examples or consequences. The eight- and twelve-mark questions require deeper analysis and evaluation. Always show both sides of the argument and finish with a clear, justified conclusion. If you practise this structure and always explain your points logically, you will be ready to achieve excellent results in your Business Studies exam.
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