Please check the examination details below before entering your candidate information

Candidate surname Other names

Centre Number Candidate Number

Pearson Edexcel International GCSE

Model 01
Afternoon (Time: 1 hour 30
minutes)
Paper
referen
ce
4BS1/01
Business
 

PAPER 1: Investigating small businesses

You do not need any other materials. Total Marks

Instructions

• Use black ink or ball-point pen.

• Fill in the boxes at the top of this page with
centre number and candidate number.

•
• Answer
your all
name,
Answer the questions in the spaces
provided – there may be more
questions.
space than you need.

Information

• The total mark for this paper is 80.

• The marks for each question are shown in
– use this as a guide as to how much time to spend on
• each question. Calculators may be used.
brackets
Advice
• Read each question carefully before you start to answer it.
• Try to answer every
• Check your answers if you have time at the end.
question.

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P75842A
©2024 Pearson
Education Ltd. F:1/1/1/1/
 FORMULAE FOR INTERNATIONAL GCSE BUSINESS

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Gross profit margin:

Gross profit = revenue – cost of sales

gross profit
Gross profit margin = 100
revenue

Operating profit margin:

Operating profit = gross profit – other operating expenses

operating profit
Operating profit margin = 100
revenue

Markup:

Markup = profit per item100

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cost per item

Return on capital employed (ROCE):

ROCE = operating profit 100

capital employed

Current
ratio:
current
Current ratio assets current
=
liabilities

Acid test
ratio:
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current assets
Acid test ratio inventory current
= liabilities

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 Answer ALL questions. Write your answers in the spaces provided.
Some questions must be answered with a cross in a box . If you
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change your mind about an answer, put a line through the box and
then mark your new answer with a cross .
1 Café Pinch is a small café based in Berlin, the capital city of Germany. It
serves a range of hot and cold meals. The owner, Kumaran, trained in
good Berlin restaurants and cafés before starting his own café business.
It opened in December 2018. It has 10 seats in front of the café and 10
inside. It is located close to an underground station. Despite being
surrounded by many other cafés, Café Pinch received 5 out of 5 in
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online reviews. The reviewers commented on the high-quality cooked

food,
filled Ciabattas, range of drinks and excellent customer service. The café is
open 8am–5pm every day. It has a website which is used for information
purposes only.

(a) (i) Which one of the following is an example of an internal source of

finance? Select one answer.

D P
o
A Overdraft t

B Crowdfunding
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C Retained profit
D Share capital

(ii) Which one of the following is a result of average costs rising in

a growing large business?
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Select one answer.

A Economies of scale
B Diseconomies of scale
C Purchasing economies
D Financial economies
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(iii) Which one of the following is the money left after all costs
have been subtracted from revenue?
Select one answer.

A Gross profit
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B Inflows
C Loss
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1)

1)

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 (iv) Which one of the following is a debt payable after 12
months? Select one answer.

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(1)

A Non-current liability
B Current liability
C Non-current asset
D Current asset

Café Pinch sells many filled Ciabattas. The most popular is

mozzarella cheese and avocado, selling for €5.30. The cost of making
this Ciabatta is €2.56.
(v) Which one of the following is the markup for the mozzarella
cheese and avocado Ciabatta?
(1)

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Select one answer.

A 48%
B 93%
C 107%
D 207%

Café Pinch wants to add French Fries to its menu. It will use British
potatoes costing £0.82 per kilo.

The exchange rate is €1 (euro) = £0.84.

(vi) Which one of the following would Café Pinch pay in euros if it AREA
bought 50 kilos of potatoes? DO NOT WRITE IN THIS
(1)
Select one answer.

A €59.52
B €48.81
C €42.00
D €41.00

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 (b) Define the term variable
cost. (1)
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(c) Define the term niche

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marketing. (1)

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business. (1)

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 Customers who buy a ham Ciabatta for €7.50, a sweet waffle for €2.90 and a
coffee at

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€3.60 would pay a total of €14.00. A lunchtime special deal offers
them a 5% discount.

(e) Calculate what a customer would pay for these three items after the
discount is applied. You are advised to show your working. (2)

€ ............................................................................................

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(3)
(f) Explain one advantage to a start-up business of using a venture
capitalist.

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 (g) Analyse the importance to Kumaran, the owner of Café
Pinch, of having motivated employees.
(6)
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(Total for Question 1 = 20 marks)

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2 (a) State one reason why Café Pinch might set business
objectives. (1)

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(b) State one way Café Pinch could use the Boston matrix
to review its product portfolio.
(1)

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(c) Explain one responsibility of the human resources
function. (3)

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 (d) Explain one advantage of being in a
partnership. (3)
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(e) Explain one disadvantage to a business of having a

hierarchical organisational structure.
(3)

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 Berlin has recently seen an increase in cafés, small restaurants and breakfast
bars. To remain competitive and keep its customers, Café Pinch is
reviewing its marketing mix. It is considering two options:

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Option 1: introduce a vegan range of products
Option 2: a special offer of 7.5% discount to customers on Wednesday
mornings 9am–12pm.
(f) Justify which one of these two options Café Pinch should choose.
(9)

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(Total for Question 2 = 20 marks)

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3 (a) Define the term secondary
sector. (1)

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(b) Outline one way Café Pinch could use social media to promote its business.
(2)

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Figure 1 is an extract of the statement of comprehensive income for Café Pinch.

Revenue €103 825

Gross profit €66 842

Other operating expenses €5 782

Figure 1

(c) Calculate, to two decimal places, the operating profit margin. You are
advised to show your working.
(2)
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 (d) Analyse two factors Café Pinch might consider when
measuring its success. (6)
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 Kumaran understands the importance of communication and the
benefits it brings. He is looking to improve communication with his
employees. Café Pinch is considering two options:

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Option 1: updating the noticeboard in the staffroom daily with
information such as sales targets and staff rotas
Option 2: weekly staff meetings.
(e) Justify which one of these two options Café Pinch should choose.
(9)

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(Total for Question 3 = 20 marks)

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4 Figure 2 is an extract of financial information from Café Pinch.

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Operating profit €84 054

Current assets €75 000

Current liabilities €63 000

Capital employed €266 058

Figure 2

(a) Calculate, to two decimal places, the return on capital employed (ROCE).
You are advised to show your working.
(2)

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 (b) Analyse how Café Pinch could use market segmentation to target
its customers. (6)
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 Café Pinch needs to ensure it understands the needs of its
customers to continue being successful.

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(c) Evaluate the importance of using methods of market research for
Café Pinch to meet customer needs. You should use the information
provided as well as your own knowledge of business.
(12)

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(Total for Question 4 = 20 marks)

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TOTAL FOR PAPER = 80 MARKS

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