About Business environment and ethics in A Level Business
Business environment and ethics is one of the 6 main topics in our A Level Business (Cambridge (CAIE) 9609) question bank, and about 15% of its real questions come from it. Tayyari Karo has 25 real questions on this topic from 2021 to 2025, from Paper 1, Paper 2, Paper 3, Paper 4. By difficulty: 13 easy, 10 hard, 2 medium.
Work through the questions below, then open the explanation for each one. Redo the ones you missed a few days later.
Try 8 real questions
These are real past-paper questions. Think of your answer first, then open the explanation.
May/June 2025 · Paper 1 · Business environment and ethics
Analyse two ways business enterprise can help the development of a country.
'Intrapreneurship is the most important factor that will ensure the success of a computer entertainment business.' Evaluate this view.
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Knowledge (2 marks): Stimulates economic activity; stimulates and improves social welfare; leads to economic growth; market demand for goods and services is increased; innovation leads to new products; jobs are created; consumer spending is stimulated; export opportunities exploited; bring factors of production together with entrepreneurial spirit and purpose, creating dynamism in an economy. Application (2 marks): In market economies, business enterprise acts as the wheels of economic growth and development. Un-utilised resources, labour and capital are utilised efficiently. …
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October/November 2025 · Paper 1 · Business environment and ethics
Define the term 'public sector'.
Explain one benefit to a business of having a business plan.
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Organisations accountable to and run/owned/controlled by central or local government (the state). The part of the economy composed of both public services and public enterprises; may be supported by examples e.g. police or medical services. The sector in which goods and services are provided by the state/government. Clear understanding (2 marks). Partial understanding (1 mark): businesses which are not controlled by private individuals/not in the private sector. …
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October/November 2025 · Paper 3 · Business environment and ethics
Analyse two likely impacts on PPP of the changing external influences.
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External influences are those outside the control of business and act as both constraints and enablers for PPP's activities. External influences include legal, political, economic and social changes. Knowledge of impacts: increased trading barriers making trade more difficult, such as due to import taxes/tariffs; decreasing demand for luxury goods due to decreasing income; increasing demand for budget or low-priced goods due to decreasing income; changes to eating habits and diets, such as healthy eating. …
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May/June 2024 · Paper 3 · Business environment and ethics
Evaluate the extent to which corporate social responsibility (CSR) should influence GBS's decision to expand into new land.
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Knowledge (2 marks): Knowledge/explanation of CSR, including social or environmental audits. Business should take into account impact of decision on society and the environment. Stakeholder view vs shareholder view. Role of pressure groups. Cost of implementing CSR policies. Benefits to GBS — image, retention of employees, increased sales, adds value. Application (2 marks): Paying an incentive to local government official is unethical. Economy requires increased supply of building materials. Need for permission from local government. Gordy has objective of expansion. Using renewable energy to extract materials. Job creation from expansion. Protests from villagers about pollution and noise. …
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May/June 2023 · Paper 1 · Business environment and ethics
Analyse one responsibility to a business of an employee as a stakeholder.
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Knowledge: To work effectively/productively. Meet the business' clear expectations. Fulfil terms of contract of employment. Follow business policy and regulations. Not damage the business reputation. Not give/sell employer's trade secrets to competitors. Being honest. Application: Effective and productive employees will perform the duties of their position to the best of their ability. Come to work when expected, manage their time well. Following company policies leads to fewer accidents and legal issues. Consult managers with any questions or problems. Work for the good of the business. Analysis: Ensures consistency, reduces risk, achieves high standards. …
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May/June 2023 · Paper 3 · Business environment and ethics
Evaluate the possible effects on WP if the new economic policy measures are implemented.
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Knowledge (2 marks): Role of government in economic policy; problems: inflation, skills shortages, government borrowing requirement; policies: pay restrictions, income tax, monetary policy. Application (2 marks): Whether to introduce new product range of outdoor play equipment; seasonal nature of sales; existing product ranges are indoor toys; current market position seems secure; employees are skilled with training opportunities; paid basic wage plus piece rates; good financial position. Analysis (2 marks): Pay restrictions in public sector may lead to workers searching for private sector work — WP may find it easier to recruit — reducing recruitment cost. …
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October/November 2023 · Paper 3 · Business environment and ethics
Analyse two ways technological change might impact on CP's decision to develop nanopaints.
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Knowledge: definition or explanation of technological change — in product design, production techniques or marketing. Possible impacts: new product designs lead to company being known as an innovator; new processes may lead to greater efficiency; innovative marketing methods may lead to more effective CRM; R&D into innovation and introduction of new technology is expensive; firms who do not innovate are in danger of being forced out of the market. …
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May/June 2022 · Paper 1 · Business environment and ethics
Define the term 'social enterprise'.
Explain two advantages to a business of being a social enterprise.
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A business with mainly social objectives such as environmental or social projects (1). A business which reinvests profits into the business to benefit society/community rather than maximise returns to owners (1). A business that focuses on triple bottom line or corporate social responsibility. Often described as not-for-profit businesses/organisations such as charities. Clear definition: 2 of the factors listed above (2 marks). Partial definition: 1 factor (1 mark). …
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