Introduction to Business | OCR A-Level Business H431 (H431)
Introduction to Business
- 134 questions
- 9 subtopics
- Assessed on all three papers
- Component 01, Component 02 and Component 03
Introduction to Business is examined in all three written papers — the specification is assessed in full on every one of them, and they differ by the context questions are set in rather than by content.
It covers entrepreneurs, enterprise and the value they create, land, labour, capital and enterprise, sectors of industry, forms of ownership and the reach of a market, sole traders, partnerships, companies and limited liability, choosing a legal structure and what it means for stakeholders, franchising and co-operatives, the functions of a business and how they depend on each other, measuring the size of a business, and what limits its growth and joint ventures and strategic alliances.
Sample questions from Introduction to Business
Answer each one closed book first, then open the answer.
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Entrepreneurs, enterprise and the value they create
How does the entrepreneur's role usually change once the business grows beyond a handful of staff?
Show the answer
The entrepreneur shifts from doing most of the work personally to delegating day-to-day decisions to specialist managers, and concentrates instead on strategy, finance and direction. -
Land, labour, capital and enterprise
Why is a bank loan not capital in the economist's sense?
Show the answer
A loan is money, and money only becomes capital once it has been spent on the machinery, premises or equipment that actually produce output. -
Sectors of industry, forms of ownership and the reach of a market
What is meant by deindustrialisation?
Show the answer
Deindustrialisation is the long-term fall in the share of a country's output and employment accounted for by the secondary sector, usually as the tertiary sector grows in its place. -
Sole traders, partnerships, companies and limited liability
How many partners does an ordinary partnership need, and what liability do they carry?
Show the answer
An ordinary partnership needs at least two partners, and each of them has unlimited liability for the debts of the firm. -
Choosing a legal structure and what it means for stakeholders
How does the choice of legal structure affect the privacy of a business's finances?
Show the answer
A sole trader or ordinary partnership publishes nothing, while a limited company must file annual accounts that competitors, customers and suppliers can all read. -
Franchising and co-operatives
How does franchising let a franchisor expand quickly without heavy borrowing?
Show the answer
Each franchisee provides the capital for their own outlet, so the network grows on other people's money and the franchisor's own investment stays small. -
The functions of a business and how they depend on each other
What is the purpose of customer service once a sale has already been made?
Show the answer
It handles queries, complaints, returns and after-sales support so that customers stay loyal and recommend the business rather than switching to a rival. -
Measuring the size of a business, and what limits its growth
A firm sells £4.5 million of goods in a market worth £60 million in total. Calculate its market share.
Show the answer
Its market share is 7.5%, because £4.5 million divided by £60 million is 0.075.
The 9 subtopics
One subtopic is one session. Work down the list.
| Subtopic | What it covers | Questions |
|---|---|---|
| Entrepreneurs, enterprise and the value they create | Recall questions on the entrepreneur and enterprise, the risk an entrepreneur bears, the qualities and start-up decisions of an entrepreneur, opportunity cost and innovation, and how new enterprise affects the economy, established industries, regions, suppliers, employees and other stakeholders. | 15 |
| Land, labour, capital and enterprise | Recall questions on land, labour, capital and enterprise as the factors of production, why a bank loan is not capital, the reward each factor earns, and how scarce labour, sites, equipment and raw materials affect costs, location, employees and customers. | 14 |
| Sectors of industry, forms of ownership and the reach of a market | Recall questions on the primary, secondary and tertiary sectors, the chain of production, deindustrialisation, the private, public and third sectors, how success is judged in each, local, national and international markets, and what makes a business multinational. | 17 |
| Sole traders, partnerships, companies and limited liability | Recall questions on sole traders, unlimited and limited liability, incorporation, ordinary partnerships, joint and several liability, the deed of partnership, limited liability partnerships, private and public limited companies, the £50,000 share capital rule and filing accounts. | 16 |
| Choosing a legal structure and what it means for stakeholders | Recall questions on the factors that decide a legal structure, the trade-off between control and finance, why owners accept unlimited liability, privacy of accounts, and how the choice affects lenders, suppliers, employees, the owner's family and creditors. | 12 |
| Franchising and co-operatives | Recall questions on franchising, the franchisor and franchisee, the initial fee and royalty, the benefits and restrictions of a franchise, quality control, co-operatives and their one-member-one-vote rule, consumer and worker co-operatives, and how co-operatives share surplus, raise capital and decide. | 18 |
| The functions of a business and how they depend on each other | Recall questions on the marketing, sales, operations, finance, human resources, customer service and support functions, how the functions depend on and constrain one another, why they conflict, and how a very small firm combines them. | 13 |
| Measuring the size of a business, and what limits its growth | Recall questions on classifying small, medium and large enterprises, measures of size including turnover, market share and market capitalisation, why owners stay small, what limits growth, how size affects customers, employees and suppliers, and diseconomies of scale. | 15 |
| Joint ventures and strategic alliances | Recall questions on joint ventures and strategic alliances, how they differ, entering foreign markets and sharing development risk, why ventures fail, alliances compared with mergers, the risk to know-how, and the effects on shareholders, employees, passengers and competition authorities. | 14 |
How the guide is worked
Answering a question from memory stores it far better than reading the answer again. The guide runs that as a fixed procedure on one subtopic at a time, about twenty minutes a session.
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Step 1 · Closed book
Cover the answers. Work through one subtopic and write down what you can. Leave blanks where you have nothing.
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Step 2 · Open book
Go back to the top. Read each printed answer and write it out in full, including the ones you had right.
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Step 3 · Closed book again
Same questions, same order, from memory. The gap between pass one and pass three is the session result.
Read the full method, the return schedule and the research behind it.
Nearby topics
OCR A-Level Business H431 Active Recall Guide
Every topic, not just this one. 2,384 questions with their answers.