Edexcel A Level Business 20 Exam Practice Worksheets with Key Terms, Questions and Answers – on the Market for Entertainment (2020 Paper 3 Context)

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The questions largely consist of 8, 10, 12 and 20 mark questions, but also include some 2, 3 and 4-mark short-answer / calculation questions (as well as additional questions points to consider where relevant).

The 8, 10, 12 and 20 mark questions and mark scheme (level descriptors) are based on the structure, style and format of recent examinations set by Edexcel (at the time of writing the resource) for the A Level Business Paper 3 exam.

Questions cover a wide range of specification topics across all four themes (see below).

Answers are provided in paragraph form, rather than a list of relevant points anticipated to be raised in the answer.

Answers typically contain a range of examples of comments which can earn high marks in relation to the question set.

The questions relate to a wide range of topics on the Edexcel A Level Business Specification as follows:

• Theme 1: 1.1.1 The Market: market size and market share. 1.1.2 Market research: Primary and secondary market research data; Limitations of market research. 1.2.1 Demand: Factors leading to a change in demand – changes in prices; advertising and branding. 1.2.2 Supply: Factors leading to a change in supply – changes in the costs of production. 1.2.4 Price elasticity of demand. 1.2.5 Income elasticity of demand. 1.3.1 Product / service design: Changes in elements of the design mix to reflect social trends. 1.3.2 Branding and promotion: Types of promotion; The benefits of strong branding; Ways to build a brand – sponsorship; Changes in branding and promotion to reflect social trends – social media. 1.3.3 Pricing strategies. 1.3.4 Distribution: Changes in distribution to reflect social trends – online distribution. 1.3.5 Marketing strategies appropriate for niche markets. 1.4.1 Approaches to staffing: Flexible workforce – part time and temporary. 1.4.2 Recruitment, selection and training: Recruitment and selection process – External versus internal recruitment; Types of training – Induction. 1.4.4 Motivation in theory and practice: Non-financial techniques to improve employee performance – empowerment. 1.5.4 Forms of business: Franchising; Plc and stock market flotation.

• Theme 2: 2.2.2 Calculation of sales volume and sales revenue. 2.2.3 Break-even: Using contribution to calculate the break-even point. 2.3.1 Profit: Calculation of gross profit, operating profit; Statement of comprehensive income (profit and loss account) – measuring profitability – calculation of gross profit margin, operating profit margin. 2.4.1 Production, productivity and efficiency – Methods of production (job, batch and flow). 2.4.2 Capacity utilisation. 2.4.3 Stock control – Just in Time (JIT). 2.5.1 Economic Influences: The effect on businesses of changes in – interest rates, the business cycle. 2.5.2 Legislation: The effects on business of: consumer protection; environmental protection.

• Theme 3: 3.1.1 Corporate objectives: Critical appraisal of mission statements. 3.1.2 Theories of corporate strategy: Effect of strategic and tactical decisions on human, physical and financial resources. 3.1.4 Impact of external influences: PESTLE – Economic, Social, Technological, Legal, Environmental. 3.2.1 Growth: Problems arising from growth. 3.2.2 Mergers and takeovers: problems of rapid growth. 3.3.2 Investment Appraisal: Simple Payback – Calculation and interpretation of the figures; Limitations of the technique. 3.4.4 Business ethics: Ethics and strategic decisions – trade-offs between profit and ethics; Corporate Social Responsibility (CSR).

• Theme 4: 4.2.3 Assessment of a country as a production location. 4.2.4 joint ventures – securing resources / supplies. 4.4.2 Ethics – Environmental considerations (emissions, waste disposal).