Business Paper 1 — Marketing and People

Practice bank

Every question, cut by section

All 67 questions in this paper in one place, filterable down to a single spec section when you know what you’re bad at — and mixed by default, because the real paper never tells you which section you’re in.

Section

Mode

Every pick reveals its explanation immediately here — right or wrong, and why. Switch to Drill when you want to rehearse the real paper’s pacing instead: a timed countdown, with feedback withheld until the whole set is done.

Pool

From Meeting Customer Needs

Question 1
1 mark

Two firms sell into the exact same £900 million national market. Firm X reports £45 million in annual sales; Firm Y reports £63 million. Which one of the following is correct?

From Promotion, Pricing and Distribution

Question 2
1 mark

A clothing brand sells its stock to a regional wholesaler, who supplies a chain of independent boutiques, who then sell to shoppers. How many stages does this distribution channel have?

From Entrepreneurs, Objectives and Choices

Question 3
1 mark

An entrepreneur says: 'I've always been the type of person who keeps going after a setback instead of giving up.' Which term from the spec does this best illustrate?

From Marketing Strategy and Product

Question 4
1 mark

A firm's product has the lowest market share of any competitor in a market that is barely growing at all. Which Boston Matrix category is this, and what does the category imply about further investment?

From Motivation and Leadership

Question 5
1 mark

A logistics company allocates 4% of its £3.5 million annual profit to a profit-share pool, split equally among its 280 employees.

How much does each employee receive from the profit-share pool? (VERIDIAN-original — testing the same QS5 (Quantitative Skill 5: calculate cost, revenue, profit and break-even) calculation skill the spec requires a minimum of 10% of marks to draw on, not a reproduction of a real past-paper question.)

From Marketing Strategy and Product

Question 6
1 mark

A product operates in a market growing at 12% a year, and the firm's own product holds a much smaller share of that market than the category leader does. Which Boston Matrix category does this product sit in?

From Motivation and Leadership

Question 7
1 mark

A new manager tells her team: "I want your input on this decision, but ultimately I'll be the one who decides, and I'll explain my reasoning either way." Which leadership style does this most closely describe?

From Demand, Supply and Elasticity

Question 8
1 mark

A budget ready-meal brand tracks its sales through a period when average household income rises by 5%. Demand for the brand's meals falls by 3% over the same period. What does this measure, and what does it show?

From Staffing and Organisational Design

Question 9
1 mark

A retail chain gives individual store managers full authority to set local prices, choose local suppliers and make hiring decisions for their own store, without needing head-office approval for any of it. What does this describe?

From Demand, Supply and Elasticity

Question 10
1 mark

A chocolate manufacturer's cost of raw cocoa rises sharply. At every price, it is now willing to produce less than before. What causes this, and which curve moves?

From Staffing and Organisational Design

Question 11
1 mark

Two firms employ the same total number of shop-floor workers. Firm X gives each supervisor a narrow span of control (few direct reports each); Firm Y gives each supervisor a wide span of control (many direct reports each). Which firm needs more layers of management to supervise the same total workforce, and why?

From Meeting Customer Needs

Question 12
4 marks

A budget airline carries 2.4 million passengers a year on domestic routes. The total domestic aviation market carries 40 million passengers a year. A rival budget airline on the same routes carries 3.6 million passengers a year.

Which one of the following correctly compares the two airlines' position in the domestic market? (VERIDIAN-original, same calculation pattern as a confirmed real past-paper market-share question — not a reproduction of it.)

From Promotion, Pricing and Distribution

Question 13
1 mark

A double-glazing company sends a sales representative to a customer's home for a face-to-face conversation before the customer decides whether to buy. Which type of promotion is this?

From Meeting Customer Needs

Question 14
1 mark

A drinks company sells a new flavour only in three trial cities for two months, at full retail price, to see how real sales perform before a national launch. Which primary research method is this?

From Promotion, Pricing and Distribution

Question 15
1 mark

A furniture maker's unit cost of production is £40. It uses cost-plus pricing with a 30% mark-up on cost. What price does it charge?

From Entrepreneurs, Objectives and Choices

Question 16
1 mark

A specialist headphone brand, WaveForm, recorded sales revenue of £18 million last year in a national headphones market with total sales revenue of £120 million.

What was WaveForm's market share last year? (VERIDIAN-original, same calculation type as a confirmed real past-paper question.)

From Marketing Strategy and Product

Question 17
4 marks

A UK manufacturer sells industrial water-treatment systems. Each system costs several hundred thousand pounds, is bought roughly once every few years by a handful of specialist engineers and procurement managers after months of technical evaluation, and is typically customised to the buyer's site. A separate UK company sells bottled soft drinks through supermarkets, bought by millions of individual shoppers making a quick, largely habitual choice at the shelf, often influenced by price promotions and advertising. (VERIDIAN-original scenario — B2B/B2C marketing strategy specifically has zero confirmed exam-question evidence in the six series reviewed for this build; the underlying spec content is certain and mandatory, but no real past-paper pattern exists to model this stimulus against.)

Which marketing-mix emphasis is more appropriate for each business, and why?

From Motivation and Leadership

Question 18
4 marks

A mid-sized textile manufacturer introduces a job rotation scheme, moving production-line staff between different stages of the assembly process every two weeks.

Which of the following best explains why this scheme is likely to increase employee motivation, specifically from the employees' own point of view? (VERIDIAN-original — written in the style of a real confirmed question type on this exact sub-topic, not a reproduction of it.)

From Marketing Strategy and Product

Question 19
1 mark

A firm reduces the number of buttons on a device and switches to a single glass panel to make it look sleeker. Which of the two 'mixes' does this specific decision belong to?

From Motivation and Leadership

Question 20
1 mark

The Hawthorne studies found that factory output rose after lighting was increased — and rose again when lighting was later reduced back toward its original level. Which theorist's core assumption does this result most directly undermine?

From Demand, Supply and Elasticity

Question 21
4 marks

A budget airline's short-haul route currently sells 2,000 seats a week at £80. It raises the price to £84 (a 5% rise), and weekly bookings fall to 1,820 (a 9% fall). Separately, the airline's finance team knows the route has consistently high price elasticity of demand, because passengers can easily switch to a rival's near-identical route.

Using the figures given, which of the following is the most complete assessment of the price rise's effect on the route's revenue, and what the airline should do next?

From Staffing and Organisational Design

Question 22
1 mark

A product designer at a manufacturing firm reports to the Head of Design for all matters relating to their design skills and career development, AND separately reports to a named Project Manager for day-to-day direction on the specific new-product launch they're currently assigned to. What organisational structure does this describe?

From Demand, Supply and Elasticity

Question 23
1 mark

A sportswear brand's sales of a particular trainer style jump sharply after a popular streaming show's lead character is seen wearing them — with no change in the trainer's own price, consumer incomes, or any rival's price. Which demand factor best explains this shift?

From Staffing and Organisational Design

Question 24
1 mark

A firm invests heavily in ongoing training and offers clear long-term career progression, expecting the resulting productivity gains and lower staff turnover to outweigh what it spends. Which staffing philosophy does this best illustrate?

From Meeting Customer Needs

Question 25
1 mark

A jewellery maker buys £35 of gold and gemstones to make one ring, then sells the finished ring for £310. What is the added value on this ring?

From Promotion, Pricing and Distribution

Question 26
1 mark

A supermarket sells tinned baked beans under its own supermarket name, even though the beans are manufactured by a separate food-processing company that never appears on the label. What type of branding is this?

From Meeting Customer Needs

Question 27
1 mark

A start-up spends six months researching exactly what its target customers say they want from a product before designing anything. Which orientation does this describe, and what's the main risk it's trading away?

From Promotion, Pricing and Distribution

Question 28
1 mark

A tech company launches a genuinely new type of wireless earbud with a patented feature no competitor can currently copy. Which pricing strategy does the underlying market condition most support at launch, and why?

From Entrepreneurs, Objectives and Choices

Question 29
1 mark

A founder who built her business entirely alone under highly uncertain conditions is now expanding fast and needs to manage a growing team. According to the mechanism behind the entrepreneur-to-leader transition, why is this founder specifically likely to find the transition difficult?

From Marketing Strategy and Product

Question 30
1 mark

A phone manufacturer switches to a cheaper battery supplier to hit a lower retail price point, and the batteries subsequently develop a fault that causes some devices to overheat. Which two elements of the design mix does this scenario actually connect, and how?

From Entrepreneurs, Objectives and Choices

Question 31
1 mark

A founder says she started her clothing brand because she 'couldn't stand seeing good fabric offcuts thrown away by fast-fashion factories and wanted to build something that used them properly.' Is this a motive or a characteristic?

From Marketing Strategy and Product

Question 32
1 mark

A supermarket launches a points card that gives existing shoppers a discount on their next visit. Which customer-loyalty goal does this scheme most directly target?

From Motivation and Leadership

Question 33
1 mark

A firm doubles the salary of a group of warehouse staff who already have secure, well-paid contracts and safe working conditions. According to Maslow's hierarchy of needs, what is the most likely effect on their motivation?

From Demand, Supply and Elasticity

Question 34
1 mark

A premium luggage brand tracks its sales through a period when average household income rises by 4%. Demand for its cases rises by 12% over the same period. What does this measure, and what does it show?

From Staffing and Organisational Design

Question 35
4 marks

A firm makes 40 warehouse employees redundant as part of a restructuring programme. Each employee has an average annual salary of £30,000. Under the firm's redundancy policy, every redundant employee receives four months' pay plus a flat £1,500 bonus.

What is the total cost of these redundancy payments? (VERIDIAN-original, testing the same QS5 (Quantitative Skill 5: calculate cost, revenue, profit and break-even) cost-calculation skill this qualification requires for at least 10% of overall marks — not a reproduction of any single past-paper question.)

From Demand, Supply and Elasticity

Question 36
1 mark

A furniture manufacturer's cost of imported timber rises sharply after a new import tariff takes effect. At every price, the firm is now willing to supply fewer units than before. Which one of the following correctly classifies this change?

From Staffing and Organisational Design

Question 37
1 mark

A firm stops employing its own in-house IT support staff and instead pays an external specialist company a contracted fee to handle all IT support. Which flexible-workforce approach is this?

From Meeting Customer Needs

Question 38
1 mark

A business owner draws a two-axis diagram to see where a gap exists between her own product and her rivals', and separately groups her existing customers into three loyalty tiers by how much they spend each year. Which one of the following correctly identifies what she has done?

From Promotion, Pricing and Distribution

Question 39
1 mark

An established national coffee chain opens a branch directly next to a small independent café and, for several months, prices its coffee below its own production cost — well below what any other coffee chain in the wider market charges — specifically until the independent café closes down, then raises its price back up. Which pricing strategy is this?

From Meeting Customer Needs

Question 40
1 mark

A specialist retailer sells only left-handed scissors and tools, to a small, dedicated group of left-handed customers, at a noticeably higher price than generic scissors. Which type of market is this retailer operating in, and why does the pricing make sense?

From Promotion, Pricing and Distribution

Question 41
1 mark

Which statement about competitive pricing is correct?

From Entrepreneurs, Objectives and Choices

Question 42
4 marks

Two founders, Amara and Deniz, both launch food-delivery start-ups in the same city within the same year. Amara says she started hers because she couldn't find any service that delivered specifically to elderly residents who struggle with app-only ordering. Deniz says he started his because he wanted to build something large enough to eventually sell for a significant sum. Both are widely described by former colleagues as calm under pressure and unusually persistent after early setbacks.

Explain, using the distinction between entrepreneurial motives and characteristics, why Amara and Deniz can be expected to differ in their reasons for starting a business despite sharing very similar personal qualities.

From Promotion, Pricing and Distribution

Question 43
1 mark

A well-established sportswear retailer prices its trainers at roughly the same level as its two biggest rivals, adjusting only slightly above or below depending on which model is being compared. Which pricing strategy is this?

From Entrepreneurs, Objectives and Choices

Question 44
1 mark

A firm's market share is best described as which one of the following?

From Marketing Strategy and Product

Question 45
1 mark

Solene Confectionery, a premium biscuit brand, has annual sales of £96 million. The total UK premium biscuit market is worth £640 million a year.

What is Solene Confectionery's market share? (VERIDIAN-original figures — the calculation type and the %-sign trap are both confirmed against a real past-paper question testing this exact objective; the numbers here are original, not reproduced.)

From Motivation and Leadership

Question 46
1 mark

According to Herzberg's two-factor theory, which one of the following is classified as a hygiene factor rather than a motivator?

From Demand, Supply and Elasticity

Question 47
1 mark

A homeware brand has already measured YED for its flagship product line at 0.6. Economists forecast that average household income will rise by 5% next year. Using this measured YED, what percentage change in demand should the business plan for?

From Motivation and Leadership

Question 48
1 mark

A mark-scheme question asks candidates to discuss the impact of a new profit-share scheme on a company's employees. Based on how candidates have actually answered questions like this in real examiner reports, what is the single most common way marks are lost?

(employees)

From Demand, Supply and Elasticity

Question 49
1 mark

The price of rice rises sharply. In the separate market for pasta — a substitute good — with pasta's own price, production costs and technology all unchanged, what happens?

From Staffing and Organisational Design

Question 50
1 mark

A group of warehouse workers forms a joint negotiating committee and agrees pay terms with management as one group, rather than each worker negotiating individually. What is the most likely effect on the workers' bargaining power compared with negotiating alone?

From Demand, Supply and Elasticity

Question 51
1 mark

A student defines demand as 'how much people want to buy a product.' Is this a complete definition, and why does it matter?

From Staffing and Organisational Design

Question 52
1 mark

A supermarket's warehouse faces unpredictable demand surges. It offers some workers contracts that guarantee no minimum hours at all — they are only called in, and paid, for the specific shifts the warehouse actually needs. What type of contract is this?

From Meeting Customer Needs

Question 53
1 mark

A new café chain reads a published national report on coffee-drinking habits, written by a market-research firm for a different client two years earlier, before deciding where to open its first branch. What type of research is this, and why?

From Promotion, Pricing and Distribution

Question 54
4 marks

A skincare brand currently sells a moisturiser at £20, shifting 12,000 units a month. After a successful two-year rebranding campaign, its price elasticity of demand for this product has fallen to −0.4. The brand raises its price by 15%, to £23.

What is the effect on the brand's monthly revenue from this product, and by how much? (VERIDIAN-original; the calculation method matches the PED/total-revenue relationship this paper's facts bank confirms is a genuine, if still relatively new, exam topic.)

From Entrepreneurs, Objectives and Choices

Question 55
1 mark

A business increases spending on quality control, which raises unit costs and slightly slows down how many new stores it can open each year. Which term from the spec most precisely describes this relationship between quality and growth speed?

From Promotion, Pricing and Distribution

Question 56
1 mark

A firm's product becomes far more strongly branded than before, with no change to the product itself or its production cost. What is the most direct effect on its price elasticity of demand, and why?

From Entrepreneurs, Objectives and Choices

Question 57
1 mark

An entrepreneur turns down a well-paid corporate job offer worth £60,000 a year to keep running her own business, which currently pays her £38,000 a year. What is the opportunity cost of her decision to keep running the business?

From Marketing Strategy and Product

Question 58
1 mark

A streaming service launched five years ago now finds that almost every household who wants a subscription already has one — new sign-ups have slowed to a trickle, even though very few existing subscribers are cancelling. Which stage of the product life cycle is it in? (VERIDIAN-original — this specific sub-topic, PLC and extension strategies, has zero confirmed exam-question evidence across the six examiner-report series reviewed for this build, so no real past-paper pattern is being followed here; the content is built directly from the specification's own stage definitions.)

From Motivation and Leadership

Question 59
1 mark

A call-centre worker who previously only answered phone calls is now also trained to handle live chat and email queries, at the same level of responsibility and pay grade as before. Which non-financial method does this best describe?

From Demand, Supply and Elasticity

Question 60
1 mark

New automated harvesting equipment cuts a coffee-bean cooperative's cost of production, shifting the supply curve for coffee beans right — with demand for coffee beans unchanged. What happens to the equilibrium price and quantity of coffee beans?

From Motivation and Leadership

Question 61
1 mark

A manager believes that if she keeps raising her team's salaries, they will keep working harder indefinitely. Based on Herzberg's two-factor theory (covered later in this lesson), which assessment of this belief is most accurate?

From Demand, Supply and Elasticity

Question 62
1 mark

A phone-accessory brand raises the price of its bestselling case from £12 to £15. Weekly sales fall from 800 to 680 units. What is the price elasticity of demand?

From Staffing and Organisational Design

Question 63
4 marks

A logistics firm recruits externally for a warehouse-supervisor role on an annual salary of £28,000. It pays a recruitment agency a fee equal to 15% of the role's annual salary, plus £220 for job adverts across two websites and £340 for a two-day induction programme for the successful candidate.

What is the total cost of recruiting, selecting and inducting this employee? (VERIDIAN-original, testing the same QS5 (Quantitative Skill 5: calculate cost, revenue, profit and break-even) cost-calculation skill this qualification requires for at least 10% of overall marks — not a reproduction of any single past-paper question.)

From Demand, Supply and Elasticity

Question 64
1 mark

A business measures its price elasticity of demand as −0.3 at its current price. It wants to increase total revenue. Should it raise or lower its price?

From Staffing and Organisational Design

Question 65
1 mark

A firm closes an entire regional sales office because it has switched to online-only sales — the sales-office job itself no longer exists anywhere in the business, for anyone. What has happened to the employees who worked there?

From Meeting Customer Needs

Question 66
1 mark

A market-research company wants a sample that guarantees every age group appears in proportion to its real share of the population, and is willing to spend the extra time needed to draw each person randomly within their age group. Which sampling method does this describe? (VERIDIAN-original — the archive reviewed for this course found no exam question directly testing sampling methods, so this tests the spec definition directly rather than a confirmed exam pattern.)

From Promotion, Pricing and Distribution

Question 67
1 mark

A producer's furniture reaches consumers at £18 through a four-stage channel (producer → wholesaler → retailer → consumer). It considers switching to selling direct to consumers online (two-stage) at £14 instead, taking on the wholesaler's and retailer's former responsibilities itself. What is the most accurate description of this switch?