Understanding business activity: past paper questions
Real questions on understanding business activity
The newest 20 of 70 written questions. Open one to see it on the real paper.
- 0986/11 · May/June 2026 · Q1a[2]
(a) Identify two ways the size of a business can be measured. 2 ..........
See it on the paper → - 0986/11 · May/June 2026 · Q1b[2]
(b) Identify two reasons why governments support new businesses. reason ..........
See it on the paper → - 0986/11 · May/June 2026 · Q1e[6]
Do you think the advantages of being a sole trader are greater than the disadvantages? Justify your answer.
See it on the paper → - 0986/21 · May/June 2026 · Q2a[8]
2 (a) Explain how the following two sections of a business plan could help Ashanti when starting her business. ° market research * human resources Market reS@ arch ..........
See it on the paper → - 0986/11 · October/November 2025 · Q1a[2]
Define ‘trade union’.
See it on the paper → - 0986/11 · October/November 2025 · Q1b[2]
Define ‘secondary sector’.
See it on the paper → - 0986/11 · October/November 2025 · Q1c[4]
Identify four reasons why a business might remain small. Reason 1: Reason 3: Reason 4: Reason 2:
See it on the paper → - 0986/11 · October/November 2025 · Q2e[6]
Explain two objectives a private sector business might have. Which objective is likely to be the most important? Justify your answer.
See it on the paper → - 0986/11 · October/November 2025 · Q4c[4]
Outline one way MTL could act ethically with each of the following stakeholder groups: Employees: Customers:
See it on the paper → - 0986/21 · October/November 2025 · Q1a[8]
Explain two advantages and two disadvantages of a business being a private limited company. Advantage 1: Advantage 2: Disadvantage 1: Disadvantage 2:
See it on the paper → - 0986/11 · May/June 2025 · Q1a[2]
Define ‘business partnership’.
See it on the paper → - 0986/11 · May/June 2025 · Q1b[2]
Identify two ways a government can support business start-ups. Way 1: Way 2:
See it on the paper → - 0986/11 · May/June 2025 · Q1d[6]
Explain two ways Brendan could increase added value for his business. Way 1: Explanation: Way 2: Explanation:
See it on the paper → - 0986/11 · May/June 2025 · Q4a[2]
Identify two methods of external growth a business might use. Method 1: Method 2:
See it on the paper → - 0986/12 · May/June 2025 · Q3a[2]
Define ‘private sector’.
See it on the paper → - 0986/12 · May/June 2025 · Q3b[2]
Identify two reasons why new businesses are at a greater risk of failure. Reason 1: Reason 2:
See it on the paper → - 0986/12 · May/June 2025 · Q3c[4]
Identify four stakeholder groups a business might have. Stakeholder 1: Stakeholder 2: Stakeholder 4: Stakeholder 3:
See it on the paper → - 0986/12 · May/June 2025 · Q3d[6]
Explain two characteristics Hal will need to become a successful entrepreneur. Characteristic 1: Explanation: Characteristic 2: Explanation:
See it on the paper → - 0986/21 · May/June 2025 · Q1a[8]
Explain two advantages and two disadvantages to Philip of changing PF from a sole trader business to a private limited company. Advantage 1: Advantage 2: Disadvantage 1: Disadvantage 2:
See it on the paper → - 0986/21 · May/June 2025 · Q2a[8]
Explain one advantage and one disadvantage of PF selling its products in a mass market. Advantage: Explanation: Disadvantage: Explanation:
See it on the paper →
What examiners said
The inclusion of the word business in this question confused some candidates. Such candidates often described a merger and gained zero marks. The strongest answers recognised that a business partnership would involve ownership by two or more people in an unincorporated business. Many candidates lost a mark by using the words run or manage rather than own.
— Examiner report, May/June 2025, 0986/11 Q1(a) (Cambridge)
This topic was well understood by most candidates. The most frequently given correct answers were grants and lower taxation rates. A common error was to state that governments would give bank loans or provide microfinance.
— Examiner report, May/June 2025, 0986/11 Q1(b) (Cambridge)
The best answers identified a way Brendan could increase added value, usually increased prices, or lower material costs, then linked this to the new flower shop enterprise. Even the strongest candidates struggled to develop their answers fully to gain both analysis marks as they could not explain how their chosen way would increase value added. This was particularly an issue for candidates who cho...
— Examiner report, May/June 2025, 0986/11 Q1(d) (Cambridge)
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