UNIT ASSESSMENT
Edexcel GCSE
Business (9-1)
Unit Assessment
1.5 Understanding
External Influences on
Business
(Edition 1)
h 30 minutes
h The maximum mark for this unit assessment is 30
Name
Centre Name
Edexcel GCSE Business (9-1)
Unit Assessment – 1.5 Understanding External Influences
on Business
Section A
Answer ALL questions. Write your answers in the spaces provided.
1(a) Which one of the following statements is correct if there is a fall in unemployment?
Select one answer:
A Consumer incomes will generally decrease o
B Demand for luxury goods and services should fall o
C Businesses should be able to keep wage rates low o
D Businesses may experience labour shortages of skilled workers o
(1)
1(b) Which two of the following are principles of consumer law?
Select two answers:
A Recruitment o
B Discrimination o
C Pay o
D Consumer rights o
E Quality
(2)
1(c) Explain one possible objective that customers would have as a stakeholder group of a business.
(3)
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1(d) Discuss the benefit to a business of using social media.
(6)
TOTAL FOR SECTION A = 12 MARKS
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Section B
Answer ALL questions.
Look at Figures 1 and 2, read the following extract carefully, then answer Questions 2a, 2b, 2c and 2d.
Write your answers in the spaces provided.
Five years ago, Robin Freeman moved from New Zealand to the Lake District National Park, a hugely popular UK holiday
destination that attracts both international and British tourists. Robin enjoys outdoor activities and was part of a team of
professional tree climbers in New Zealand.
Having saved enough money from his previous job, Robin
recently decided to open a tree climbing business in the Lake
District, called Treeatholon Ltd. The business offers two hour
lessons to tourists and locals that want to climb a 30 metre oak
tree for fun for an average price of £30 per person. Customers,
who must be aged 8 years and upwards, use ropes and
harnesses to reach the top of the tree and are under the direct
supervision of two tree climbing professionals whilst they
climb (Figure 1).
Robin, being the sole shareholder, is very keen to have the
highest standards of health and safety within his business.
Figure 1 Before opening Treeatholon Ltd, Robin recruited another
instructor to help him provide the lessons. However, Robin
found this a difficult choice, as there are currently no nationally recognised tree climbing qualifications that exist in the
UK. British tree climbers gain experience from climbing at other venues and following training given from other tree
climbing businesses.
The tree Robin uses is situated in a busy park in the centre of a popular tourist and residential area. The area experiences
heavy traffic congestion and there is a lack of parking space at peak times. Robin pays the local council a fee to
exclusively use the tree throughout the year on the basis that the tree will not be harmed in any way from his business
activities. A local environmental pressure group has taken an active interest in Robin’s business, as the firm is the first of
its kind in the area.
Robin has been pleased with customer numbers since opening, despite the competition from other tourist attractions in
the area. He is, however, concerned that interest rates are set to rise, due to a sharp increase in the rate of inflation in
the UK economy. Robin also tracks the value of the exchange rate of the British pound (GBP) against the Euro, shown in
Figure 2.
Figure 2 Average exchange rate GBP to Euro
Two years ago 1.00 GPB – 1.50 Euro
One year ago 1.00 GPB – 1.30 Euro
This year 1.00 GPB – 1.10 Euro
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2(A) State one stakeholder group that would have been directly impacted by the opening of Treeatholon
Ltd.
(1)
2(b) Outline one reason why Robin is very keen to have high standards of health and safety in his
business.
(2)
2(c) Analyse the possible impact on Treeatholon Ltd of changes in the economic climate.
(6)
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2(d) To respond to the changes in the economic climate, Robin is considering two options to add value
to his service.
• Send digital images and video footage to customers of their tree climbing experience free of
charge
• Offer an online payment system rather than customers paying in cash on arrival
Justify which one of these two options Robin should choose.
(9)
TOTAL FOR SECTION B = 18 MARKS
TOTAL FOR ASSESSMENT 1.5 = 30 MARKS
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