Edexcel GCSE Business (1BS0) Past Papers 2026

Investigating Small Business

Duration: 1h 45m

Building a Business

Duration: 1h 45m

Non-financial aims and objectives — confusion with financial goals

In Paper 1 2023 Q4(b), many candidates showed no understanding of non-financial aims and instead analysed financial objectives (cutting costs, accessing customers). Examiners gave zero marks to these answers. Candidates who correctly identified personal satisfaction and social objectives scored high marks. This distinction is regularly tested and regularly missed.

Paper 1

Internal vs external growth — confused with internal recruitment and internal finance

In Paper 2 2023 Q7(d) and Paper 2 2024 Q4(a), a large number of candidates produced lengthy answers scoring zero because they confused internal growth (developing new products, entering new markets) with internal sources of finance or internal recruitment. These wrong-topic answers scored zero regardless of their length or analytical quality.

Paper 2

Break-even — understanding what is being calculated, not just memorising the formula

In Paper 1 2023 Q2(c), many candidates recalled the break-even formula but could not apply it when one variable changed (e.g. a new selling price). Examiners stated: 'It is important to try and develop an understanding of what business calculations are used for rather than simply remembering the formula and substituting in the correct figures.'

Paper 1

Retained profit as a source of finance — unique characteristics vs generic finance knowledge

In both Paper 1 2023 Q3(d) and Paper 1 2024 Q2(d), many candidates gave generic finance answers (e.g. 'it could lead to business failure', 'speed of access') that applied to any source of finance rather than specifically to retained profit. Examiners rejected answers about 'speed of access' because retained profit can take years to accumulate.

Paper 1

Productivity — confused with production output quantity

In Paper 2 2024 Q5(c), examiners awarded zero marks if there was no implied or explicit understanding of 'productivity' (output per worker per time period). Many candidates wrote about 'improving quantity of output' which is production, not productivity. Lengthy responses that never demonstrated understanding of the term scored zero.

Paper 2

Flat organisational structure — generic disadvantages with no structural link

In Paper 2 2024 Q2(e), examiners were instructed to award zero marks to responses that gave generic disadvantages (e.g. 'poor quality products') with no connection to a flat organisational structure. This was described as 'a growing trend'. Correct answers focused on span of control (too many employees per manager) and limited promotion opportunities.

Paper 2

Explain one 'way/method' questions — answered as 'explain one benefit' questions

In Paper 1 2023 Q1(d) and Q2(d), and Paper 2 2024 Q2(d), candidates who explained a 'way' or 'method' received no marks for development that drifted into advantages or benefits. For example, explaining 'how the internet affects location' requires staying on the mechanism — not saying 'leads to more customers' as the development. Examiners explicitly flagged this pattern in both years.

Paper 1, Paper 2

Cash-flow and overdrafts — weak understanding of how they interact

In Paper 1 2024 Q6(c), candidates who focused on overdrafts as their Justify option typically showed weak knowledge of how overdrafts address cash-flow problems, resulting in weak analysis and evaluation. Examiners noted that trade credit answers were more successful because candidates could link the mechanism clearly to cash-flow improvement and identify realistic limitations.

Paper 1