EDEXCEL GCSE BUSINESS · PAPER 1
Exam Practice: Business Aims and Objectives
Business aims and objectives · Putting a business idea into practice · Lesson 1 of 5 · 9 marks · 20 minutes
Name Date
Answer all questions. Show your working in calculations.
Question 1 STATE [1 mark]
State one non-financial aim of a business.
Question 2 DEFINE [1 mark]
Define the term 'market share'.
Question 3 CALCULATE [2 marks]
A bakery's sales last year were £180,000. Total sales in its local market were £1,200,000. Calculate the bakery's market share. You are advised to show your working.
Question 4 OUTLINE [2 marks]
Outline one financial aim a new business might have.
Question 5 EXPLAIN [3 marks]
Explain one reason why the aims of a new business might be different from the aims of an established business.
Answers
Check your answer only once you have written one.
Question 1 [1 mark]
Independence.
▸ Any one of: social objectives; personal satisfaction; challenge; independence; control 1 mark
Question 2 [1 mark]
The percentage of total sales in a market that is made by one business.
▸ A business's sales as a percentage / proportion of total market sales 1 mark
Question 3 [2 marks]
(£180,000 ÷ £1,200,000) × 100 = 15%
▸ Correct method: (180,000 ÷ 1,200,000) × 100 1 mark
▸ Correct answer: 15% 1 mark (award 2 marks for the correct answer with no working)
Question 4 [2 marks]
Survival (1), because many new businesses fail in their first year, so the owner's first goal is to cover costs and keep trading (1).
▸ A financial aim identified: survival / profit / sales / market share / financial security 1 mark
▸ Developed: why a new business might have it 1 mark
Question 5 [3 marks]
A new business is more likely to aim for survival (1). It has few customers and little money set aside, so it may struggle to cover its costs in the first months (1). An established business already has loyal customers and a steady income, so it can aim for profit or growth in market share instead (1).
▸ A reason identified, e.g. new businesses aim to survive / established ones aim for growth or profit 1 mark
▸ First linked point of explanation 1 mark
▸ Second linked point of explanation 1 mark