Each year, thousands of business students from across the UK spend months poring over textbooks to learn the ins and outs of running a company, in hopes that they can pass their exams and start their own business one day.
Some of the questions they face, however, could stump even an experienced CEO. In 2024, just 4.1% of students achieved an A* in their A Level Business course. Think you’d be one of them? It’s time to go back to school.
We’ve pulled together seven questions from this year’s A Level and Scottish Higher exams. Do you know your equity from your exit strategy? Open your question papers, and let’s begin.
Question 1 – name two pricing strategies that can be used when launching a product.
Knowing how to calculate your prices is one of the most important steps for businesses in today’s economic climate. Have you heard of these pricing strategies? Select an answer from one of the below four options.
Question 2 – describe a strategy an organisation could use to extend the life cycle of a product.
Longer-lasting products can help businesses to maintain their market position and customer base. But how do you extend the life cycle of a product? Select an answer from one of the below four options.
This creates a sense of urgency and exclusivity, even if the product itself hasn’t changed.
This will create a perpetual cycle of product launches to extend the life of the product.
This will enable you to introduce the product to new customer segments who may not have been aware of it before.
Refuse to provide repair services or parts for older products, forcing consumers to buy replacements.
Question 3 – choose the way an organisation would NOT promote positive employee relations.
Improving relations between employees can have positive impact on productivity and morale. Select an answer from one of the below four options.
Question 4 – complete the following: “cash budgets are useful to…”
Cash forecasting is one of the most important skills you’ll need to design a comprehensive business plan. Select an answer from one of the below four options.
Knowing this will allow for appropriate cash reserves to be put in place.
Cash budgeting provides a precise roadmap for the future, eliminating the need for wider business objectives.
Detailed cash budgets can help you to feel more confident about changing market conditions.
Cash budgets can help businesses to estimate qualitative factors like customer experience, brand perception, or product quality.
Question 5 – describe what is NOT a method of appraisal.
Employee appraisals are a key part of performance management strategies. Select an answer from one of the below four options.
Question 6 – describe the factors a business would consider when choosing a method of production.
The choice of a production method is a critical decision for any business that must take into account multiple factors. Select an answer from one of the below four options.
Question 7 – which of the below is NOT a method that can be used to ensure product quality?
Quality checks are key to ensure your goods and services meet the expectations and needs of customers. Select an answer from one of the below four options.
Time to mark your test!
Pencils down – it’s time to find out how you’d score if you were studying an A Level business course today. Read on for the full list of answers to the above seven questions..
Question 1 – name two pricing strategies that can be used when launching a product.
Answer: C.) Promotional Pricing and Penetration Pricing.
Promotional pricing is when a new business sets the price of product lower than market price. As it has just been launched, this lower cost helps to generate interest in the product.
Penetration Pricing is used when breaking into a crowded market. The business sets a low price for a specific amount of time to attract customers away from competitors. Once a significant market share has been achieved, the price will increase. You can learn more about these and other pricing strategies in our full guide.
Question 2 – describe a strategy an organisation could use to extend the life cycle of a product.
Answer: C.) Sell in a new country or region
Expanding into a new geographical region is a smart way to diversify your markets. This will create a longer lifespan for your product and help you to gain more sales. Read more about how to expand internationally in our full guide for startup owners.
Question 3 – choose the way an organisation would promote positive employee relations.
Answer: D.) All of the above
None of these policies would improve employee relations. Quiet quitting can make morale worse, while Return to Office (RTO) mandates are known to promote worker rebellion. Rewarding staff for not taking sick leave can also endanger their health and wellbeing.
Question 4 – complete the following: “cash budgets are useful to”..
Answer: A.) See where a negative cash position/deficit is expected
Cash flow forecasts estimate the amount of money your business will bring in and pay out in a set period. This enables you to see where there might be shortfalls, so you can plan for future. That said, the data specifically relates to finances. You can’t use it to plan for everything (which is also why our red herring answers are wrong).
Question 5 – which of the following is NOT a method of appraisal?
Answer: D.) Upward feedback
As the name suggests, upward feedback refers to employees giving feedback to managers, instead of higher-ups appraising their reports. It is a way to improve employee engagement, and foster a positive company culture that prioritises improvement over criticism.
Question 6 – describe the factors a business would consider when choosing a method of production.
Answer: D.) All of the above
Production methods can feel like a ‘down-the-line’ problem when a firm is starting out. But your production process can significantly impact your profitability and operations. The chosen method must align with your sales strategy, hiring plans, and business structure.
Question 7 – which of the below is NOT a method that can be used to ensure product quality?
Answer: C.) Lead qualifying
Lead qualification might help you to better target customers. However, it does not necessarily mean that the quality of the product or service will improve (although you may see an increase in sales).
Results day: how did you score?
- 1-2: stay behind and see us after class.
- 3-4: it might be time for some remedial lessons..
- 5-6: a solid effort. For that reason, we’re in.
- 7: Alan Sugar? We had no idea you read Startups!
Want to improve your test score? Check out more of our small business guides to get revising and ace your resit.
