AQA GCSE Business 2027 Predicted Practice Paper — Paper 1

Answer ALL questions. Write your answers in the spaces provided. You must write down all the stages in your working.

Section A

Multiple choice and short answer questions. Answer all questions.

• 1

  Question SECTION-A1 (1 mark)

  Which of the following best describes an entrepreneur?

  A. A person who lends money to a business at a fixed rate of interestB. A person who takes a financial risk to set up and run a businessC. A government official who regulates how businesses operateD. An employee who is paid a wage for working set hours

  (Total for Question SECTION-A1 is 1 mark)
• 2

  Question SECTION-A2 (1 mark)

  A sole trader is a business that has unlimited liability. Which of the following is the correct meaning of unlimited liability?

  A. The business can borrow an unlimited amount of money from any bankB. The owner is personally responsible for all the debts of the businessC. The business can employ an unlimited number of staffD. The owner pays no tax on the profits of the business

  (Total for Question SECTION-A2 is 1 mark)
• 3

  Question SECTION-A3 (1 mark)

  Which of the following is a variable cost for a company that bakes and sells cakes?

  A. Monthly rent on the bakery premisesB. Annual insurance premiumC. Flour used to bake the cakesD. Salary of the full-time manager

  (Total for Question SECTION-A3 is 1 mark)
• 4

  Question SECTION-A4 (1 mark)

  A business calculates its total revenue by multiplying selling price per unit by the number of units sold. If a business sells 500 units at GBP 12 each, what is its total revenue in GBP?

  Your answer

  (Total for Question SECTION-A4 is 1 mark)
• 5

  Question SECTION-A5 (1 mark)

  Which of the following is most likely to be an aim for a newly launched social enterprise?

  A. Maximising dividends paid to overseas shareholdersB. Reinvesting surplus to benefit the local communityC. Reducing the quality of products to cut costsD. Avoiding all forms of taxation permanently

  (Total for Question SECTION-A5 is 1 mark)
• 6

  Question SECTION-A6 (2 marks)

  Define the term 'market segmentation'.

  (Total for Question SECTION-A6 is 2 marks)
• 7

  Question SECTION-A7 (2 marks)

  State two benefits to a business of having a strong brand image.

  (Total for Question SECTION-A7 is 2 marks)
• 8

  Question SECTION-A8 (1 mark)

  Which of the following would improve a business's cash flow in the short term?

  A. Offering customers longer credit periods to payB. Buying a large amount of stock in advance for cashC. Negotiating longer credit terms with suppliersD. Repaying a bank loan early in full

  (Total for Question SECTION-A8 is 1 mark)
• 9

  Question SECTION-A9 (1 mark)

  A shop buys a jacket for GBP 40 and sells it for GBP 70. Calculate the gross profit made on one jacket, in GBP.

  Your answer

  (Total for Question SECTION-A9 is 1 mark)
• 10

  Question SECTION-A10 (2 marks)

  Identify two methods of primary market research.

  (Total for Question SECTION-A10 is 2 marks)
• 11

  Question SECTION-A11 (1 mark)

  Which of the following best describes 'e-commerce'?

  A. Selling goods and services over the internetB. Producing goods using automated machineryC. Employing staff on zero-hours contractsD. Sending marketing emails to existing customers only

  (Total for Question SECTION-A11 is 1 mark)
• 12

  Question SECTION-A12 (2 marks)

  Explain one reason why a business might choose to locate near to its suppliers.

  (Total for Question SECTION-A12 is 2 marks)
• 13

  Question SECTION-A13 (2 marks)

  A business has fixed costs of GBP 8000 per month. Each unit has a selling price of GBP 20 and variable costs of GBP 12. Calculate the number of units the business must sell each month to break even.

  Your answer

  (Total for Question SECTION-A13 is 2 marks)
• 14

  Question SECTION-A14 (2 marks)

  Explain one benefit to a business of motivated employees.

  (Total for Question SECTION-A14 is 2 marks)

Section B

Case study/data response stimulus. Answer all questions.

• 1

  Question SECTION-B1 (2 marks)

  Study the following stimulus for Questions in Section B. BrightLeaf Ltd is a private limited company that makes reusable water bottles in the UK. It employs 45 staff and sells online and through independent gift shops. In 2026 BrightLeaf had sales revenue of GBP 1.8 million and net profit of GBP 216,000. The owners want to grow the business but are worried about rising raw-material prices and increasing competition from cheaper imports. State what is meant by a 'private limited company' (Ltd).

  (Total for Question SECTION-B1 is 2 marks)
• 2

  Question SECTION-B2 (2 marks)

  Calculate BrightLeaf Ltd's net profit margin for 2026. Give your answer as a percentage to one decimal place.

  Your answer

  (Total for Question SECTION-B2 is 2 marks)
• 3

  Question SECTION-B3 (2 marks)

  Identify two variable costs that BrightLeaf Ltd is likely to incur in making its water bottles.

  (Total for Question SECTION-B3 is 2 marks)
• 4

  Question SECTION-B4 (4 marks)

  Explain one benefit to BrightLeaf Ltd of selling its products online.

  (Total for Question SECTION-B4 is 4 marks)
• 5

  Question SECTION-B5 (6 marks)

  BrightLeaf Ltd is worried about competition from cheaper imports. Explain one way BrightLeaf could use the marketing mix to compete without cutting its prices.

  (Total for Question SECTION-B5 is 6 marks)
• 6

  Question SECTION-B6 (9 marks)

  Analyse one way BrightLeaf Ltd could respond to rising raw-material prices in order to protect its net profit.

  (Total for Question SECTION-B6 is 9 marks)
• 7

  Question SECTION-B7 (9 marks)

  BrightLeaf Ltd needs GBP 150,000 to buy new machinery to increase production. Analyse one internal source of finance the business could use to raise this money.

  (Total for Question SECTION-B7 is 9 marks)

Section C

Case study/data response stimulus. Answer all questions.

• 1

  Question SECTION-C1 (2 marks)

  Study the following stimulus for Questions in Section C. Harbour Coffee is a chain of 12 coffee shops in a coastal region of England, run as a partnership by two owners, Priya and Sam. In 2026 it had total revenue of GBP 2,400,000 and total costs of GBP 2,040,000. Customer surveys show that 68% of visitors are tourists and sales fall sharply in winter. Priya wants to open 4 new shops using a bank loan; Sam wants to launch a mobile app with a loyalty scheme to increase repeat visits from local customers. Staff turnover is high at 35% per year. Calculate Harbour Coffee's total profit for 2026, in GBP.

  Your answer

  (Total for Question SECTION-C1 is 2 marks)
• 2

  Question SECTION-C2 (2 marks)

  State what is meant by a 'partnership'.

  (Total for Question SECTION-C2 is 2 marks)
• 3

  Question SECTION-C3 (2 marks)

  Identify two possible consequences for Harbour Coffee of its high staff turnover of 35% per year.

  (Total for Question SECTION-C3 is 2 marks)
• 4

  Question SECTION-C4 (3 marks)

  Explain one reason why Harbour Coffee's sales fall sharply in winter.

  (Total for Question SECTION-C4 is 3 marks)
• 5

  Question SECTION-C5 (3 marks)

  Explain one benefit to Harbour Coffee of launching a mobile app with a loyalty scheme.

  (Total for Question SECTION-C5 is 3 marks)
• 6

  Question SECTION-C6 (9 marks)

  Analyse the impact on Harbour Coffee of taking out a bank loan to open 4 new coffee shops.

  (Total for Question SECTION-C6 is 9 marks)
• 7

  Question SECTION-C7 (15 marks)

  Priya wants to open 4 new shops using a bank loan, while Sam wants to launch a mobile app with a loyalty scheme. Justify which option Harbour Coffee should choose. Use the information provided and your knowledge of business to support your answer.

  (Total for Question SECTION-C7 is 15 marks)