Entrepreneurs & Leaders (Edexcel A Level Business): Exam Questions

Exam code: 9BS0

3 hours24 questions
1
4 marks

Read the following extracts (A to C) (opens in a new tab) before answering

Explain one business objective Tesco might be aiming to achieve by launching its Jack’s stores

2
4 marks

Read the following extracts (A to D) (opens in a new tab) before answering 

Explain one non-financial reward for Lord Somerleyton and his business partner Toby Marchant of setting up and running Hot Chip

3
4 marks

Read the following extracts (A to C) (opens in a new tab) before answering

Explain one potential trade-off of Mark Rowntree's decision to continue to focus on selling Bon Bon's products in its niche market

4
4 marks

Read the following extracts (A to D) (opens in a new tab) before answering

Explain one implication for Mumtaz's owners of remaining as a private limited company

5
4 marks

Read the following extracts (A to D) (opens in a new tab) before answering

Explain one benefit to Warby Parker of establishing the business with a socially responsible business objective

6
4 marks

Read the following extracts (E to G) (opens in a new tab) before answering

Explain one barrier to entrepreneurship Hardy Punglia is likely to have faced as he set up his business

7
4 marks

Extract A

Halden Tools Ltd

Halden Tools Ltd manufactures hand tools for professional carpenters at a factory in Wigan. It employs 140 people and has sold essentially the same range of chisels and planes for thirty years.

In 2023 Ryan Calloway, a machine operator on the grinding line, noticed that carpenters were taping torches to their chisels when working in loft spaces. In his own time he built a prototype chisel with a recessed LED in the handle.

Halden's directors gave Ryan a £6,000 budget, two days a week away from the grinding line and access to the design team to develop the idea. The LumenEdge chisel launched in 2024 and now accounts for 11% of Halden's revenue.

Ryan remains a Halden employee. He receives a share of the profit the product makes but did not have to invest any of his own money, and would have kept his job had the chisel failed.

Managing Director Ines Halden said: "We had walked past that problem for three decades."

Using Extract A, explain one way in which Ryan Calloway has demonstrated entrepreneurship within Halden Tools Ltd

8
4 marks

Extract A

The Saltmarsh Oyster Company Ltd

The Saltmarsh Oyster Company Ltd farms oysters on 12 hectares of tidal flats in Essex. Founder Ade Kowalczyk left a career in insurance to start the business in 2019.

Some of the threats Ade faces can be measured. Roughly 8% of stock is lost to predatory crabs each year, a figure that has held steady since 2019, and Saltmarsh insures its equipment against storm damage at a cost of £4,200 a year.

Other threats cannot be measured. A new marine disease could wipe out a whole year class, and no insurer will cover it. A change in water quality regulations could close the beds at any point, and nobody can say how likely that is.

Ade holds six months of operating costs in reserve and has started trialling a second growing site 30 miles away.

Ade said: "I can put a number on the crabs. I cannot put a number on a disease nobody has seen yet."

Using Extract A, explain one way in which Ade Kowalczyk has anticipated uncertainty, rather than risk, at The Saltmarsh Oyster Company Ltd

9
4 marks

Extract A

Redhaven Print Ltd

Redhaven Print Ltd is a commercial printing business in Swansea with £48,000 available to invest. Owner Georgia Nwosu can fund only one of the two options below.

Comparison table for Redhaven Print Ltd: Option A, digital press, and Option B, delivery vans, each cost £48,000; expected additional annual revenue is £61,500 and £44,000, with running costs of £19,800 and £12,600 respectively.

Georgia has chosen Option A.

Using the data in Extract A, calculate the opportunity cost to Redhaven Print Ltd of choosing Option A. You are advised to show your working

10
4 marks

Extract A

Deveron Knitwear Ltd

Deveron Knitwear Ltd makes lambswool jumpers in a converted mill in Aberdeenshire. It was founded in 2021 by Fiona Strachan, who had spent eleven years as a hospital nurse and had never run a business.

Fiona taught herself pattern grading from online courses over two winters before producing anything to sell. Her first two wholesale orders were cancelled when a supplier failed, leaving her with £9,000 of unsold yarn. She sold the stock directly at craft fairs, recovered most of the cost, and changed supplier.

She now employs nine people. Fiona still handles the design work herself but has hired a production manager, saying she was "the wrong person to be counting jumpers".

Deveron turned its first profit in 2024.

Fiona said: "I did not know anything about knitwear manufacturing in 2021. I knew I would not stop until I did."

Using Extract A, explain one entrepreneurial characteristic shown by Fiona Strachan in setting up Deveron Knitwear Ltd

11
4 marks

Extract A

Brackwell Fitness Ltd

Brackwell Fitness Ltd opened its first gym in Leeds in 2017. Founder Dan Okonjo coached classes himself, designed the timetable and knew every member by name.

The business now runs 14 gyms across northern England and employs 310 people. Dan still personally approves every class timetable and every piece of equipment ordered, and sends a weekly email to all staff.

Regional managers report that decisions wait for Dan's approval, sometimes for a fortnight. Two of the four regional managers appointed in 2023 have since left, one saying she "had responsibility but no authority".

Members at the newer gyms rate Brackwell 3.4 out of 5, compared with 4.6 at the original Leeds site.

The board has asked Dan to appoint an operations director and step back to setting strategy.

Dan said: "I built this by being across every detail. I do not know how to stop."

Using Extract A, explain one difficulty Dan Okonjo faces in moving from entrepreneur to leader at Brackwell Fitness Ltd

1
8 marks

Read the following extracts (E to H) (opens in a new tab) before answering

Assess the importance of two entrepreneurial roles carried out by Peter Roberts to the success of Pure Gym

2
12 marks

Read the following extracts (A to D) (opens in a new tab) before answering

Creating and setting up a business is one role of an entrepreneur

Assess whether this is the most important role of an entrepreneur, such as Lord Somerleyton

3
10 marks

Read the following extracts (E to G) (opens in a new tab) before answering

Assess the likely consequences of Ebac Ltd continuing to operate as a private limited company

4
10 marks

Read the following extracts (A to C) (opens in a new tab) before answering

Assess the likely consequences of stock market flotation for a business, such as Spotify

5
8 marks

Read the following extracts (E to H) (opens in a new tab) before answering

Assess two difficulties for Michael O’Leary when developing from an entrepreneur to a leader

6
10 marks

Read the following extracts (A to C) (opens in a new tab) before answering

Assess the importance of creativity as a characteristic of entrepreneur Hans Wilsdorf

7
8 marks

Read Extracts D to H in the Source Booklet (opens in a new tab) before answering

Using the data in Extracts D and E, assess how two entrepreneurial roles may have led to the success of German Automotive (GA)

8
10 marks

Extract A

Trust Pilot customer reviews of Timpson

Horizontal bar chart of 6,489 reviews, rated 3.8 overall: 5-star 5,838; 4-star 175; 3-star 86; 2-star 175; 1-star 215. Five-star reviews greatly outnumber the others.

(Source: adapted from https://uk.trustpilot.com/review/www.timpson.co.uk)

Extract B

Timpson Ltd

Timpson was established in 1865 by John Timpson. The business repairs shoes, cuts keys, repairs mobile phones, and repairs watches. Timpson offers a wide range of while-you-wait services on the High Street or in supermarkets. The Group continues to expand by opening new stores, mostly in supermarket car parks.

Timpson became a private limited company in 1960.

(Source: adapted from https://www.timpson.co.uk/about-timpson)

Extract C

Interview with James Timpson – Timpson’s chairman 2024

“I believe that if a business invests in colleagues, it can succeed. If you sat in one of our board meetings you’d hear a lot about our colleagues’ happiness. We call this ‘upside down’ management. The more money we invest in our culture of kindness, the better the business performs. Colleagues need to stick to our only two rules: put the money in the till and look the part.

Many businesses don’t realise that their most valuable asset isn’t the stock on the shelves, it’s the loyalty and passion of their colleagues. In other businesses, when sales fall, directors usually demand that costs are cut, and training ignored. However, this can lead to higher sickness, low morale and even strikes.

We paid for a garden play area for an employee’s grandchildren, and a family facing major health issues went to Disneyland Paris.

Timpson is one of the largest employers of ex-offenders in the UK. Approximately 10% of our workforce have criminal convictions. All ex-offenders we recruit are risk-assessed and provide us with full disclosure during interview. Those we recruit are extremely loyal, productive, and hardworking.”

(Source: adapted from https://www.theguardian.com/commentisfree/2024/mar/05/burntout-britain-workers-management-strike-sick and https://www.timpson-group. co.uk/timpson-foundation/ex-offenders/

Extract D

Johnsons dry cleaners

Johnsons is a national professional clothes cleaning business, competing with local dry cleaners. It has over 200 stores throughout the UK and offers a dry-cleaning service for a range of items, such as suits, bridalwear, and duvets. Johnsons combines first-class customer care with expert advice on fabrics and textiles.

Johnsons typically employs 2-3 employees in its branches and currently the only training they receive is one day’s induction covering serving customers, till usage and cleaning services offered in that branch.

More specialist items are sent to Johnsons Excellence Centre in Rugby. The textile technicians there have unparalleled levels of expertise. Johnsons’ services combine advanced cleaning technology with traditional methods to care for specific textiles, such as wedding dresses. It also specialises in handbags, and motorcycle leathers.

(Source: adapted from https://www.timpson-group.co.uk/group-companies/johnsons/)

Assess the likely consequences of Timpson Ltd continuing to operate as a private limited company

9
8 marks

Extract A

Vinted Ltd: A growing clothing business

Vinted Ltd was founded in Lithuania in 2008 by Milda Mitkute and Justas Janauskas, who remain major shareholders. It operates across Europe and the USA, and recently raised €250m in share capital to help fund expansion into new markets.

Vinted currently has 45 million users who buy and sell clothes on its platform. Sellers pay no fees until the items are sold and then Vinted receives a percentage of the selling price.

Vinted utilises several trends, such as affordable fashion, and the use of online channels. Vinted is part of the circular economy which describes how goods, such as clothing, are recycled and re-sold, helping to prolong usage in a sustainable way.

In the future Vinted plans to make it easier for people to sell goods on the platform for charity. In the UK, charity shops are a significant channel for used goods, where people donate clothes to help organisations such as the British Heart Foundation, which sell them in physical stores to raise funds. Vinted is working to give sellers the option to sell for a charity of their choice.

(Source: adapted from techcrunch.com)

Extract B

Global fashion market trends in 2023

  1. The rise of resale clothing

    • The secondhand clothing market will grow three times faster than the global clothing market overall.

    • Technology and online marketplaces are driving this trend, with 70% of customers saying it’s easier now to shop secondhand than it was five years ago. With customer incomes squeezed, resale helps with affordability.

  2. Sustainability

    • Fast-fashion brands are sometimes criticised for the methods they use to manufacture and produce clothing, involving long global supply chains. 42% of global customers prefer to purchase eco-friendly and sustainable products. 3

  3. Brick-and-mortar

    • 22% of online returns are because products look different in reality when received by the customer. This expense is driving many fashion brands back into traditional retail.

    • Customers want both online and offline sales channels: 50% of customers are likely to look at a product online and buy it in a physical store; 50% say they do the opposite: viewing products in-store and buying them online.

(Source: adapted from https://www.shopify.com/uk/enterprise/ecommerce-fashion-industry)

Extract C

Clothes manufacturing in China

Treemap of textile export value ($bn, 2020): China 275.76; Europe 151.88; rest of Asia 87.89; Vietnam 38.91; Bangladesh 37.26; India 29.72; Turkey 28.52; US 22.15; Africa under 20; Australasia under 10.

(Source: adapted from OEC)

Previously clothing brands were attracted to China by a large labour force, low labour costs, clothing manufacturing technology, and high product quality. Factories concentrated in coastal port cities, also help with transportation. Fast-fashion brand Shein has its base in China.

Mango’s chief executive, Toni Ruiz, said he was considering buying less from China. “What we’re looking at is the extent to which all this global sourcing, developed over many years, might become more local,” he said.

According to China’s National Bureau of Statistics, the average factory wage doubled between 2013 and 2021. Products manufactured in China are not as competitive once shipping and transport costs are taken into account. An increasingly important consideration for retailers is traceability in the supply chain after years of widely reported labour abuses in China.

Many clothing brands are moving production to Turkey, which has a customs agreement with the European Union. Turkey also has a free trade agreement with the UK. Turkey has easy access to raw materials, such as cotton, as well as having a skilled workforce protected by strong labour laws. Hugo Boss and Zara already use Turkey as a production location.

(Source: adapted from https://www.ft.com/content/0e23cf24- ed9c-4a0a-916c-7059d3795b93)

Assess two financial consequences of Vinted operating as a private limited company

10
8 marks

Extract D

The End of the Road festival

The End of the Road festival is an annual music festival in England which focuses on independent rock and folk music.

Every time its founder, Simon Taffe, went to a music festival, he thought: “I could do this.” He went home and spent two weeks doing research, calling security firms and portable toilet companies.

The venues Simon contacted all said they wouldn’t let him hold a festival. The only place agreed was the village of Larmer Tree on the border of Wiltshire and Dorset.

The first End of the Road festival was in September 2006 and cost £150,000. He sold his house to cover some of the cost, and the rest came from loans. In April of 2006, ticket sales were slow; no matter how much was put into advertising, sales did not grow. Simon realised then that he was going to lose a lot of money. He hired a van and drove around the country, dropping leaflets at any festival he could find.

The first festival made a loss of £35,000. Simon was 25 and still had his decorating business. The second year, the festival made a loss of £50,000. By the fourth year, the festival had just about become profitable.

In 2024, 15,000 people attended the End of the Road festival set in fields, woodland and Victorian gardens and had six stages.

(Source: adapted from https://www.theguardian.com/lifeandstyle/article/2024/ aug/21/a-moment-that-changed-me-drunken-idea-start-music-festivalsold-my-house and https://en.wikipedia.org/wiki/End_of_the_Road_ Festival#Line-ups and https://www.theguardian.com/commentisfree/ article/2024/sep/01/music-festivals-egalitarianism-end-of-the-road)

Extract E

End of the Road festival – environmental and charity initiatives

FreeFill is a reusable Cup Scheme which charges festivalgoers £1 per cup to reduce single-use plastic consumption. The reusable aspect of this scheme has also helped End of The Road in reducing recyclable waste. The End of The Road donates some of its income to fund various clean water projects across the globe.

The End of the Road festival promotes War Child, a charity which aims to secure a safe future for every child affected by war, and supports it financially. War Child works with local communities and governments to help protect and educate children and support them to heal and learn. (Source: adapted from https://endoftheroadfestival.com/environmental-initiatives/)

Extract F

UK music festivals

The Leeds and Reading festivals attract almost 200 000 fans between them. Smaller UK festivals sell between 5 000 and 20 000 tickets, and have experienced many problems including competition, and rising costs.

192 out of 600 operating in 2019 have closed. The Secret Garden Party in Cambridgeshire closed and symbolically burned down its main stage at the end of July 2024. Founder Freddie Fellowes said: “It’s no longer sustainable for independents to run festivals. The difficulty is that if you put your ticket price out early, you commit to a price and a budget. That is a huge risk. Profit Margins are incredibly tight.”

However, The Green Man festival, in south Wales, sold out in just two hours in 2025, and the Lake District’s Kendal Calling has seen record ticket sales for August 2025. A general boom in summer events indicates that consumers are willing to spend money on memorable experiences.

Sponsorship is also important to festivals. Ticket prices would need to increase without it. Oxfordshire’s Wilderness festival is sponsored by carmaker Audi. (Source: adapted from https://www.theguardian.com/business/article/2024/aug/25/ smaller-uk-music-festivals-struggle-to-be-heard-in-crowded-market)

Extract G

Selected festival prices and capacities

Table comparing 2025 weekend adult ticket prices and capacities: End of the Road £240, 15,000; Reading £250, 105,000; Latitude £308, 45,000; Isle of Wight £289.95, 60,000; Green Man £275, 25,000.

(Source: adapted from various festival websites)

Assess two entrepreneurial motives that Simon Taffe might have had when setting up the End of the Road festival

1
20 marks

Read the following extracts (A to C) (opens in a new tab) before answering

As part of its product development strategy, Spotify has set the objective of developing and launching the 'Car Thing', a voice-activated music-streaming gadget for cars. It estimated that the project will cost £80m

To raise finance, it is considering two options; either stock market flotation or arranging a long-term loan

Evaluate these two options and recommend which one Spotify should choose in order to raise finance for the launch of 'Car Thing'

2
20 marks

Read the following extracts (A to C) (opens in a new tab) before answering

The founder of Tended Ltd, Leo Scott Smith, has struggled to manage the business during a period of rapid growth

In order to improve the business's long-term stability he is considering either recruiting an experienced Chief Executive Officer (CEO) to run the business or selling a share of the business to a venture capitalist

Evaluate these two options and recommend which one is most suitable to improve Tended Ltd's long-term stability

3
20 marks

Read the following extracts (A to C) (opens in a new tab) before answering

In order to remain competitive in the luxury watch market, Rolex could become a public limited company or remain a private limited company

Evaluate these two options and recommend which one is more likely to support Rolex remaining competitive in the luxury watch market