Edexcel IGCSE Business: Organisation structure and employees (4BS1) – 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.

These questions cover Topic 2, section 2.5 “Organisation structure and employees” (points 2.5.1 to 2.5.3) in the Pearson Edexcel International GCSE in Business (4BS1) specification, Issue 2, February 2026. Read the study guide and revision notes first if you need them. Course links: the 4BS1 Business hub, the printable checklist and the free diagnostics. Every business is invented and amounts are in dollars. Show your working in calculations.

Questions

1. Define the term “chain of command”. [2]

2. Stansfell Printers has a director and two managers (production and sales). The production manager has 3 supervisors, and each supervisor has 6 operatives. The sales manager has 5 sales representatives.

(a) State the production manager’s span of control. [1] (b) State the span of control of each supervisor. [1] (c) Calculate the total number of employees. [2] (d) State the number of levels in the structure. [1]

3. Hollin Print has 18 employees and a flat structure. Outline one benefit of this structure for Hollin Print. [2]

4. Explain one disadvantage of a hierarchical structure. [3]

5. Tilmarsh Bakeries has six shops. Head office chooses the recipes and orders ingredients for every shop. Analyse one benefit to Tilmarsh Bakeries of this centralised approach. [4]

6. Explain why a manager who delegates a task is still accountable for the result. [3]

7. Give the functional area that is responsible for each activity.

(a) Setting the selling price of a new product. [1] (b) Running an induction session for new staff. [1] (c) Preparing the budget for next year. [1] (d) Checking that finished goods meet the required standard. [1] (e) Arranging packaging and distribution. [1]

8. A carpenter at Faresham Joinery works a basic week of 38 hours at 15.50 an hour. In one week the carpenter also works 5 hours of overtime paid at time and a half.

(a) Calculate the basic pay. [2] (b) Calculate the overtime pay and the gross pay for the week. [3] (c) Explain why the finance function must include wages in the cash-flow forecast. [3]

9. Explain the difference between dismissal and redundancy. [3]

10. Winterbeck Outdoor Supplies is a small business with 45 employees. The owner is choosing between two structures.

	Option A: hierarchical	Option B: flat
Posts	Owner, 2 managers, 6 supervisors, 36 staff	Owner, 4 team leaders, 40 staff
Annual salary of each management post	Manager 38,000; supervisor 27,000	Team leader 29,000

The owner wants quick responses to customers and lower costs. Justify which option the owner should choose. [8]

11. Orlanthe Appliances is a large manufacturer selling in five countries, with more than 250 employees. Head office approves every price change. This takes 12 days. Competitors in the main markets change prices within 2 days. The board proposes that regional managers set prices within a range agreed by head office. Evaluate this proposal. [8]

12. Outline one difference between a disciplinary procedure and a grievance procedure. [2]

Answers

1. The line of authority from the top of the business to the bottom [1], along which instructions pass down and reports pass up [1]. [2] Examiner insight: A definition question usually rewards a precise statement plus one further feature. Just writing “who is in charge” is too vague to show you know it is a line through several levels.

2. (a) The production manager has 3 supervisors directly below, so the span of control is 3 [1]. (b) Each supervisor has 6 operatives, so the span is 6 [1]. (c) 1 + 2 + 3 + (3 × 6) + 5 [1] = 29 employees [1]. (d) Director, managers, supervisors and sales representatives, operatives: 4 levels [1]. Examiner insight: Count only direct reports for span of control, and remember to include the top post and every group in a total. Showing the addition lets a small slip be seen as such.

3. Communication is faster [1] because there are few levels, so owner’s instructions reach all 18 employees quickly and customers’ needs are dealt with sooner [1]. [2] Examiner insight: An outline gives two linked points. State the benefit, then say what it leads to for this business. A benefit with no consequence is only half of the answer.

4. Communication is slower [1] because messages pass through many levels [1], so a decision may reach staff late or be changed along the way, and the business may respond slowly to customers [1]. [3] Examiner insight: Explain questions need a point followed by expansion. Naming “it is expensive” without saying why (more managers on salaries) leaves the expansion missing.

5. Head office can order ingredients for all six shops together [1], so orders are larger [1]. Suppliers may then charge less per unit [1], which lowers costs and increases the profit on each loaf sold [1]. [4] Examiner insight: For analyse, build a chain of reasons from the benefit to its effect on the business. Listing two separate benefits in one line usually gives less than developing one.

6. Delegation passes authority to do the task, not the answerability for the outcome [1]. The manager gave the instruction and chose the person [1], so the manager must explain a poor result to their own senior manager and deal with the consequences [1]. [3] Examiner insight: Separate the two words clearly. Answers that say the subordinate “takes all the blame” mix up doing the task with being answerable for it.

7. (a) Marketing [1]. (b) Human resources [1]. (c) Finance [1]. (d) Production [1]. (e) Marketing [1]. Examiner insight: Learn the specification’s lists by area. Pricing and packaging and distribution are both under marketing, which is where answers often slip.

8. (a) 38 × 15.50 [1] = 589.00 [1]. (b) Overtime = 5 × 15.50 × 1.5 [1] = 116.25 [1]. Gross pay = 589.00 + 116.25 = 705.25 [1]. (c) Wages are cash going out of the business [1]. If they are left out, the forecast closing balance would be too high [1], and the business might not have enough cash on pay day [1]. [3] Examiner insight: Show each stage of a wage calculation and give the unit. In part (c), say what happens to the forecast, not just that wages are “important”.

9. Dismissal is when the employer ends the contract because of the employee’s conduct or performance [1]. Redundancy is when the post itself disappears [1], for example because a department closes, so the employee has not done anything wrong [1]. [3] Examiner insight: Give the reason behind each term. Saying “dismissal means losing your job” fits both words and shows no difference.

10. Option A cost: 2 × 38,000 + 6 × 27,000 = 238,000 [1]. Option B cost: 4 × 29,000 = 116,000 [1]. Option B is 122,000 a year cheaper [1]. Under Option B each team leader has 40 ÷ 4 = 10 staff, a span of 10, while A’s supervisors each have 36 ÷ 6 = 6 [1]. Option B has a shorter chain of command (staff, team leader, owner), so customer matters can be decided and passed on faster [1]. A weakness of B is that a span of 10 means less close supervision and more pressure on each team leader [1]. Option A has more promotion steps but costs more and is slower [1]. Judgement: Option B should be chosen because it saves 122,000 and suits the aim of quick responses, provided team leaders are trained [1]. [8] Examiner insight: Justify means recommending one option using the information given. Use the figures, weigh the other option, and end with a clear choice and a reason tied to the owner’s aims.

11. The proposal would cut the delay: 12 − 2 = 10 days slower than competitors [1], so regional managers could match rivals and avoid losing sales [1]. Regional managers know their own markets, so prices may fit local demand better [1], and trusted managers may be more motivated [1]. However, prices may differ between countries, which can confuse customers and damage the brand [1]. Managers might set prices too low and reduce profit, or lack training to judge [1]. Judgement: the proposal is worthwhile, because a ten-day delay is costly in competitive markets [1], as long as head office sets the range and checks results regularly [1]. [8] Examiner insight: An evaluate answer needs both sides and a supported conclusion. A balanced list that stops without a decision is usually not enough.

12. A disciplinary procedure is used by the employer to deal with an employee who has broken the rules [1], whereas a grievance procedure is used by an employee to make a formal complaint, for example about treatment by a manager [1]. [2] Examiner insight: An outline of a difference needs both sides stated. Say who starts each procedure and why.

Where marks are usually lost

• Giving the total number of staff when asked for one manager’s span of control.
• Forgetting to count the top post when adding up employees.
• Describing a benefit without saying how it helps the named business.
• Writing “it is slower” with no reason such as the number of levels.
• Saying accountability passes to the person who is given the task.
• Putting pricing or packaging in the wrong functional area.
• Leaving out working or units in wage calculations.
• Stopping an evaluate answer after the list of points, with no judgement.
• Ignoring the case figures in a justify question, such as the salaries.
• Treating redundancy and dismissal as the same.

Next steps

• Review the revision notes and the study guide.
• Return to the 4BS1 Business hub and the printable checklist.
• Take the free diagnostics to find weak topics.
• Book a free trial class.

Frequently asked questions

What do these organisation structure practice questions cover? They follow section 2.5 of Pearson Edexcel International GCSE Business (4BS1): hierarchical and flat organisational charts, centralised and decentralised structures, span of control, chain of command, delegation and the four functional areas.

What is a common mistake with span of control? Giving the total number of staff instead of the number of subordinates who report directly to one manager. Span of control is counted for one manager at a time.

Does delegation pass on accountability? No. Delegation passes authority to carry out a task to a subordinate, but the delegating manager remains accountable for the result.

What should you include in a wage calculation answer? Show your working and units, for example basic hours times the hourly rate plus any overtime at its higher rate, and remember to count every post when adding up employees.

Official syllabus

Pearson Edexcel International GCSE in Business (4BS1), Specification, Issue 2, February 2026, published by Pearson Education Limited. Topic 2: People in business, section 2.5 “Organisation structure and employees”, points 2.5.1 to 2.5.3.