A Level Business: Business objectives and Stakeholders in a business (Cambridge 9609) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

This set covers sections 1.4 (Business objectives) and 1.5 (Stakeholders in a business) of the Cambridge International AS & A Level Business 9609 syllabus for examination in 2026, 2027 and 2028. These sections are AS Level content and are also needed at A Level. All businesses are invented, and all sums of money are in dollars.

Links: study guide, revision notes, Cambridge A Level Business hub, printable checklist and the free diagnostics. The wider topic 1 practice paper covers other parts of topic 1.

Questions

1. Define the term social enterprise. [2]

2. Explain two ways in which the objectives of a public-sector organisation are likely to differ from those of a private-sector business. [4]

3. Vantorp Foods makes chilled soups. Five statements from its planning documents are listed.

A: “We exist to bring honest food to every table.” B: “Become the largest chilled-soup brand in the country.” C: “Raise sales revenue from soups by 12% in the next 12 months.” D: “Launch a range of soups sold through supermarkets.” E: “Run a free tasting stall in 30 supermarkets during March.”

Identify whether each statement is a mission statement, an aim, an objective, a strategy or a tactic. [5]

4. Stourbeck Climbing Wall has 2,000 members. Its manager sets the goal: “Get more members soon.” (a) State two elements of SMART that the goal lacks. [2] (b) Rewrite it as a SMART objective that raises membership by 8%, and calculate the new membership figure. [3]

5. Marnholt Cycle Hire had sales revenue of 240,000 and profit of 36,000 last year. The owner’s objective is to raise profit by 20% and to earn a profit margin of 16% of sales revenue. (a) Calculate the profit target. [1] (b) Calculate the sales revenue needed to earn that profit at a margin of 16%. [2] (c) Calculate the maximum total costs that go into the budget. [2]

6. Explain two ways in which communicating objectives to the workforce may affect employees. [4]

7. Vantorp Foods turns down an offer to buy cheap ingredients from a supplier known to pay its farmers very low prices. Explain how ethics may be influencing Vantorp’s objectives and activities. [4]

8. State one right and one responsibility of employees, and one right and one responsibility of customers. [4]

9. Windlestraw Leisure Centre is run by a local council. Its objective has been low entry prices for all residents. Last year it had 150,000 visits at an entry price of 6. The council now cuts its yearly subsidy by 25% of the current subsidy of 400,000 and tells the centre to make up the loss from entry fees. The manager considers raising the price to 7. (a) Calculate the extra yearly revenue from the price rise if visits stay at 150,000. [2] (b) Calculate the extra yearly revenue if visits fall by 10%. Explain what this shows about the new objective. [3] (c) Explain how this change of objective may affect two stakeholder groups. [4]

10. Vantorp Foods, whose mission is to bring honest food to every table, earns a profit of 640,000 a year and sells 2,500,000 tubs. A cheaper non-recyclable tub would save 0.04 per tub. Shareholders favour the change. Customers and a local environmental group oppose it. Evaluate whether Vantorp should put its shareholders’ aims first. [10]

11. Explain why a business needs to be accountable to its stakeholders, and how conflict might arise if two stakeholder groups have different aims. [6]

Answers

1. A business that trades to achieve a social or environmental purpose [1], putting most of its surplus back into that purpose rather than paying owners [1]. [2] Examiner insight: A definition earns more credit when it separates the purpose from ordinary trading; “a charity” alone is too narrow.

2. Any two, each explained: the public-sector organisation may aim to provide a service to all citizens, not to maximise profit [1], so prices may be set low [1]; it may aim to stay within a budget set by government [1], so it must control spending and may be unable to expand freely [1]. [4] Examiner insight: “Differ” needs both sides. A statement about the public sector with no contrast to private profit goals usually stays at one mark.

3. A: mission statement [1]; B: aim [1]; C: objective [1]; D: strategy [1]; E: tactic [1]. [5] Examiner insight: The tell is the number and the date: only C has both, so it is the objective. Tactics are short-term actions within a strategy.

4. (a) Any two of: not specific (what does “more” mean?), not measurable (no figure), not time-limited (“soon” is no deadline) [1][1]. [2] (b) “Raise membership by 8%, from 2,000 to 2,160, by the end of the next financial year” [1]. 2,000 × 1.08 [1] = 2,160 members [1]. [3] Examiner insight: A rewrite gains credit only if it contains a figure and a deadline. Check each SMART letter before you submit.

5. (a) 36,000 × 1.20 = 43,200 [1]. [1] (b) Revenue = 43,200 ÷ 0.16 [1] = 270,000, a 12.5% rise on last year [1]. [2] (c) Costs = 270,000 − 43,200 [1] = 226,800 [1]. [2] Examiner insight: Show each division and subtraction. Writing the formula for margin first makes it easier to follow your working.

6. Any two, each explained. Clear objectives give employees direction [1], so they can plan their work and may be more motivated [1]. If objectives are unrealistic or poorly explained, staff may feel stressed or confused [1], which can lower morale and raise labour turnover [1]. [4] Examiner insight: Each effect needs a consequence for employees. “Communication is good” without a result stays unrewarded.

7. Vantorp is choosing not to maximise profit by buying the cheapest inputs [1], which shows an ethical limit on its activities [1]. Its objective may include fair treatment of suppliers and farmers [1], so it accepts higher costs for a better reputation and customer loyalty [1]. [4] Examiner insight: Apply the principle to the Vantorp context. A general paragraph about ethics gains little.

8. Employees: right to safe conditions or agreed pay [1]; responsibility to work to the terms of their contract [1]. Customers: right to safe, accurately described goods [1]; responsibility to pay the agreed price [1]. [4] Examiner insight: Name the right and the responsibility separately for each group. Do not name a statute.

9. (a) Subsidy cut: 25% of 400,000 is 100,000 [1]. Extra revenue: 150,000 × (7 − 6) = 150,000 [1]. [2] (b) Visits: 150,000 × 0.9 = 135,000 [1]. Revenue: 135,000 × 7 = 945,000, against 900,000 before, so only 45,000 extra [1]. The rise no longer covers the 100,000 lost subsidy, so the new objective of making up the loss through fees may not be met if visits fall [1]. [3] (c) Any two groups. Low-income residents face a higher price [1], and may use the centre less [1]. Council taxpayers pay less in subsidy [1], so they may support the change [1]. [4] Examiner insight: Use the figures from the stem in the explanation. A bare answer that “prices rise” does not show the effect.

10. For putting shareholders first: the saving is 2,500,000 × 0.04 = 100,000 a year [1], about 15.6% of profit [1]; shareholders are owners who carry the risk and expect a return [1]; if profit falls, investment and jobs may suffer [1]. Against: customers and an environmental group oppose the change [1], so sales and reputation may fall [1]; a loss of customers could cost more than 100,000 [1]; long-term loyalty can protect shareholder value [1]. Judgement: it depends on how many customers react and how strongly [1]. For a brand that sells on honest food, as its mission suggests, the risk to reputation is probably greater than the saving, so shareholders’ aims should not automatically come first [1]. [10] Examiner insight: An evaluation needs a decision and a reason for it. Listing both sides without a conclusion is usually capped.

11. Accountability means explaining and justifying actions to those affected [1]. A business needs it because stakeholders hold things it relies on, such as capital, labour or custom [1], and trust, once lost, is hard to regain [1]. Conflict: for example, shareholders want higher profit through lower costs [1], while employees want higher pay [1], so a gain for one group is a loss for the other [1]. [6] Examiner insight: Use a specific pair of groups and show why their aims oppose. A general statement about conflict gains little.

Where marks are usually lost

• Giving a definition with no purpose or detail.
• Mixing up mission statement, aim and objective.
• Missing the number or deadline in a SMART objective.
• Skipping the working in a calculation.
• Listing effects on stakeholders without explaining how they react.
• Treating “stakeholder” and “shareholder” as the same.
• Evaluating with no judgement or no reason for it.
• Ignoring the data in the case.

Next steps

• Re-read the study guide for any question you missed.
• Use the revision notes for recall.
• Check the course hub and checklist.
• Take the free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

Which sections of Cambridge AS and A Level Business 9609 do these questions cover? Section 1.4 Business objectives and section 1.5 Stakeholders in a business. The questions are original and the businesses are invented.

What is the difference between a mission statement, an aim and an objective? A mission statement sets out why the business exists, an aim is a broad long-term goal, and an objective is a specific target. A clear objective usually contains a number and a deadline.

What makes a SMART objective score in an exam answer? It must include a measurable figure and a deadline. A rewrite that leaves out the number or the time limit gains little credit.

What is the difference between a stakeholder and a shareholder? A shareholder owns shares in a company. A stakeholder is any person or group with an interest in the business, such as employees, customers or the community; shareholders are just one stakeholder group.

Official syllabus

Cambridge International AS & A Level Business 9609 syllabus for examination in 2026, 2027 and 2028, published by Cambridge University Press & Assessment (Cambridge Assessment International Education), sections 1.4 and 1.5.