O Level Business: Organisation and management (Cambridge 7115) – 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 section 2.2 Organisation and management of the Cambridge O Level Business Studies 7115 syllabus for examination in 2026. All businesses and figures below are invented. Learn the content first from the study guide or the revision notes. The topic-level practice questions cover all of Topic 2. Course pages: the Cambridge O Level Business hub and the printable checklist.

Questions

1. (a) Define span of control. [2] (b) Define chain of command. [2]

2. Stanwick Cables has one managing director. Four department managers report to the managing director. Each manager has three supervisors, and each supervisor has six operatives reporting to them. (a) State the managing director’s span of control. [1] (b) Calculate the number of supervisors. [1] (c) Calculate the number of operatives. [1] (d) Calculate the total number of employees in the business. [1] (e) State the number of levels of hierarchy. [1]

3. Identify the function of management shown by each action. Each answer must be a different function. [5] (i) A manager sets a target of 4,500 units for next quarter. (ii) A manager tells the packing team to start a new order now. (iii) A manager checks that the sales team and the production team have agreed the same delivery dates. (iv) A manager assigns staff, machines and money to each product line. (v) A manager compares last month’s actual output with the target and investigates the shortfall.

4. Explain the difference between the role of a director and the role of a supervisor. [4]

5. (a) Explain two benefits to a business of delegation. [4] (b) Explain why a manager might keep tight control over a newly hired employee. [2]

6. Dalbeattie Dental Labs makes crowns and bridges for dentists. It has 14 technicians, all fully qualified, with an average of nine years’ experience. The business has bought digital scanners, and the manager must decide how the work will be organised around them. Recommend and justify an appropriate leadership style for making this decision. [8]

7. (a) Define a trade union. [2] (b) Explain two effects on employees of being members of a trade union. [4]

8. Cobbleford Couriers employs 84 drivers. 63 of them are members of a trade union. The union negotiates a 2.5% increase on the drivers’ annual wage bill of 1,680,000 dollars. (a) Calculate the percentage of drivers who are union members. [2] (b) Calculate the annual cost of the increase to the business. [2] (c) Calculate the average annual increase per driver. [1]

9. Veridale Bakery has one managing director, three managers, nine supervisors and 54 bakers. Each manager has three supervisors, and each supervisor has six bakers. The managing director proposes to remove the supervisor level. The bakers would then report directly to the managers. (a) Calculate each manager’s span of control after the change, if the 54 bakers are shared equally among the three managers. [2] (b) Analyse two effects of the change on communication and supervision. [4] (c) Evaluate whether the change is a good decision. [4]

10. Axminster Greenhouses employs 40 fruit pickers. 30 are union members. The union has asked for a 4% pay rise and for the pickers to be consulted before any change is made to their weekly rotas, which the owner currently decides alone. Evaluate the likely effects on the business of its employees being union members. [8]

11. Briarfield Signs grew from 9 to 30 employees in three years. The owner still approves every quote, design and purchase herself. Quotes are often sent late and she has no time to plan. (a) State two benefits to Briarfield Signs of delegating the approval of routine quotes. [2] (b) Explain the risk of delegating, and why this is a question of trust versus control. [3] (c) Recommend and justify a change to the way the business is organised and a leadership style that would suit it. [5]

Answers

1. (a) The number of people [1] who report directly to one manager or supervisor [1]. [2] (b) The line of authority from the top of the business to the bottom [1], through which instructions pass down and information passes up [1]. [2] Examiner insight: A definition earns most credit when it uses the key idea of “direct” reporting or “line of authority”; a vague phrase such as “how many workers there are” is unlikely to be enough.

2. (a) 4 [1] [1] (b) 4 × 3 = 12 supervisors [1] [1] (c) 12 × 6 = 72 operatives [1] [1] (d) 1 + 4 + 12 + 72 = 89 employees [1] [1] (e) Managing director, managers, supervisors, operatives = 4 levels [1] [1] Examiner insight: Show each multiplication; leaving out the managing director from the total is a common slip.

3. (i) Planning [1]. (ii) Commanding [1]. (iii) Coordinating [1]. (iv) Organising [1]. (v) Controlling [1]. [5] Examiner insight: The easiest confusion is between commanding (giving instructions) and organising (arranging resources); read each action for what the manager actually does.

4. A director sets the long-term direction and objectives of the business [1], for example by deciding to enter a new market [1]. A supervisor oversees the daily work of a small team [1], for example by checking that tasks are finished and reporting problems to a manager [1]. [4] Examiner insight: Answers tend to gain more when each role is paired with a specific example; two descriptions that could apply to any manager do not show a difference.

5. (a) First benefit, such as saving the manager’s time [1], so that the manager can spend it on planning and other higher-level work [1]. Second benefit, such as motivating staff [1], because being trusted with responsibility and decisions makes the job more interesting [1]. Other valid benefits exist. [4] (b) A new employee does not yet know the business’s methods or standards [1], so tight control reduces the risk of costly mistakes until the employee has shown that they can be trusted [1]. [2] Examiner insight: A benefit with no consequence (“it is quicker”) is usually only a partial answer; add what the business gains.

6. Recommend a democratic style [1]. The 14 technicians are fully qualified and experienced, so they know how the work is done and may spot problems with the scanners that the manager would miss [1], and their ideas should improve the new way of working [1]. The change affects their daily work, so involving them should raise commitment and reduce resistance [1], and staff who helped design the system are more likely to make it work [1]. A limitation is that consulting 14 people takes time and they may disagree [1], so the manager should set a deadline and keep the final decision [1]. An autocratic style would be quicker but would waste their expertise, so democratic is the better choice here [1]. [8] Examiner insight: Strong answers quote case details, include a limitation and compare with an alternative style.

7. (a) An organisation of workers [1] formed to protect and improve its members’ pay, conditions and interests [1]. [2] (b) First effect: pay, hours and conditions are negotiated together [1], which gives members more bargaining power than they would have alone [1]. Second effect: members receive advice and support if they have a dispute with the employer [1], so they may feel more secure at work [1]. [4] Examiner insight: “Effects on employees” means the question asks about the workers, not the employer; answers about the business’s costs do not answer it.

8. (a) 63 ÷ 84 [1] × 100 = 75% [1] [2] (b) 2.5% × 1,680,000 [1] = 42,000 dollars a year [1] [2] (c) 42,000 ÷ 84 = 500 dollars per driver [1] [1] Examiner insight: Include the unit with a money answer and the percentage sign with a percentage; the working line shows how you reached the figure even if the arithmetic slips.

9. (a) 54 ÷ 3 [1] = 18 bakers per manager [1] [2] (b) Communication: with fewer levels, messages go from manager to baker without passing through a supervisor [1], so instructions are faster and less likely to be distorted [1]. Supervision: each manager now has 18 bakers instead of three supervisors [1], so there is less close checking of quality and problems may go unnoticed for longer [1]. [4] (c) Benefit: removing nine supervisor posts saves salary costs [1]. Drawback: managers’ workload rises sharply and bakers lose the first rung of promotion [1]. The result depends on how skilled the bakers are and whether they can work without close checking [1]. Judgement, for example: the change is sensible only if the bakers are experienced and the managers can delegate routine tasks; otherwise quality is likely to suffer [1]. [4] Examiner insight: Part (a) needs the division shown; in the analysis part, writing “communication improves” without saying why is a statement, not an analysis, so complete the chain of reasoning.

10. Costs: a 4% pay rise increases the wage bill and cuts profit unless the business raises prices or output [1]. The owner must discuss rotas, which may slow decisions about changes [1]. Benefits: consultation may produce rotas that suit pickers, which should improve morale [1] and reduce absence or leaving [1]. The union also gives the owner one channel for communicating with 30 of the 40 pickers [1], so disputes may be settled sooner [1]. Judgement: the effect is likely to be positive in the long run if the owner treats the union as a partner, because the extra cost can be offset by lower turnover and fewer disputes [1]. A dispute at harvest could be costly, so the owner should negotiate carefully [1]. [8] Examiner insight: An evaluate question rewards both sides and a final decision.

11. (a) Any two: the owner has more time to plan [1]; quotes are sent faster [1]. Other valid benefits include motivating staff and making routine decisions nearer to the work. [2] (b) The risk is that an employee may make mistakes, such as quoting too low a price [1]. The owner must trust staff to decide [1] but also keep enough control, such as price limits, to prevent costly errors [1]. [3] (c) Recommend adding a level of hierarchy, such as a sales supervisor or manager, to whom quote approval is delegated [1]. This widens the chain of command downwards, but it frees the owner for planning, and 30 staff are too many for one person to approve everything [1]; give clear limits so that costs are controlled [1]. Recommend a democratic style [1] because the designers and sales staff who deal with customers every day can contribute ideas on prices and designs, and being consulted should motivate them [1]. [5] Examiner insight: A recommendation needs a reason linked to the case, such as the growth from 9 to 30 staff; “delegate more” with no reason is unlikely to be enough.

Where marks are usually lost

• Mixing up span of control (direct reports) with the total number of employees.
• Forgetting to count the top post when counting the total or the levels.
• Confusing commanding, organising and coordinating when matching actions to functions.
• Choosing a leadership style but not linking it to the staff, the time available or the task.
• Giving only one side in “evaluate” questions and finishing without a judgement.
• Leaving out units in money answers or the percentage sign in percentage answers.

Frequently asked questions

Are these Cambridge O Level Business Studies 7115 past paper questions? No. They are original practice questions written for Marlbridge on section 2.2 Organisation and management. Use them alongside the official past papers.

What is the most common slip when counting employees or levels on a chart? Forgetting to count the top post, such as the managing director, and mixing up span of control (direct reports only) with the total number of employees. Show each multiplication.

How do you avoid confusing the functions of management? Read each action carefully: commanding means giving instructions, organising means arranging resources, and coordinating means making departments and people work together. These three are the easiest to mix up.

How do you answer an “effects on employees” question about trade unions? Write about the workers, such as their bargaining power, advice and support, not about the employer’s costs. Answers about the business do not answer a question on employees.

What does an “evaluate” question on a pay claim need? Both sides, such as the extra cost against possible gains in morale and lower turnover, and a final decision. Finishing without a judgement loses marks.

Next steps

• Revise with the revision notes and re-read the study guide.
• Check your coverage with the printable checklist and the course hub.
• Take the free 10-minute diagnostics to find your weakest area.
• Book a free trial class if you want a teacher to go through your answers.

Official syllabus

Cambridge International, Cambridge O Level Business Studies (7115) syllabus for examination in 2026, subject content section 2.2 Organisation and management.