These A Level Business 7132 topics consistently produce the lowest scores. Prioritise these in your revision.
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Exchange rates and their impact on importers and exporters
'This area of the specification has been poorly answered by students in previous series.' On 7132/2 June 2022 Q3.4 the most common error was getting the SPICED mechanism backwards and applying exchange-rate effects to a business that didn't actually import or export.
Affects: Paper 1, Paper 2
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Gearing, ROCE and capital-employed calculations
On 7132/2 June 2023 Q1.2 'the majority could provide a formula, but it was evident that some did not know the formula for ROCE which prevented progress.' Many candidates also failed to link gearing to capital employed correctly.
Affects: Paper 2, Paper 3
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Contingency planning vs operational and strategic planning
On 7132/2 June 2022 Q3.5 'it was fairly common to see that students' responses had holding extra buffer stock as a contingency plan — this is an operational decision rather than a contingency plan.' Confusion with strategic planning was also flagged.
Affects: Paper 1, Paper 2
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Organic growth (vs inorganic / vs environmentally-friendly)
On 7132/3 June 2023 'organic growth was the most misunderstood piece of business knowledge on the paper, with a notable minority believing that this meant environmentally-friendly growth.' Students also struggled to explain WHY organic growth is less risky.
Affects: Paper 3
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Capital intensive vs labour intensive production
On 7132/2 June 2023 'not knowing key terms like Capital Intensive... made it difficult for some students to respond to these questions with creditworthy responses.' On 7132/1 June 2022 Q21 weaker responses were assertive rather than reasoned about labour vs capital intensity.
Affects: Paper 1, Paper 2
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Price elasticity and income elasticity of demand
On 7132/1 June 2023 Q19 'there was evidence of uncertainty relating to the terms elastic and inelastic and even where students provided logical conclusions, their arguments showed confusion between these two terms.' On 7132/2 June 2022 a 'common misconception was that a product with price inelastic demand will see no change in demand when price rises'.
Affects: Paper 1, Paper 2
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Stakeholder mapping and stakeholder vs shareholder distinction
On 7132/2 June 2023 Q3.2 'stakeholder mapping was not understood in its entirety by some who struggled to make a relevant point.' On 7132/3 June 2022 Q5 'a small, but notable minority of students thought that stakeholders meant shareholders.'
Affects: Paper 2, Paper 3
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Joint ventures vs mergers vs takeovers vs venture capital
On 7132/2 June 2022 Q2.4 'the concept of (joint) ventures was not well understood by a significant number of students. It was common for students to assume it was the same as a merger, but another misunderstanding was to answer the question relating to venture capital.'
Affects: Paper 2, Paper 3