OCR GCSE Business: People (J204) – 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 3 People (3.1 to 3.7) of the OCR GCSE (9-1) Business J204 specification, Version 2.0 (January 2026). Teaching is in the People study guide and the People revision notes. The wider topic-level practice set covers the rest of Business 1. Hub: OCR GCSE Business. Checklist: printable checklist. Try the free diagnostics too.

Businesses and people are invented. Ivy Gate Cafe is a busy cafe with 14 staff. Harbourgate Garden Centre is a larger shop with 11 permanent staff.

Questions

1. State two reasons why a business might recruit new employees. [2]

2. Identify the way of working described in each case. (a) A barista works 15 hours a week at Ivy Gate Cafe. [1] (b) A photographer invoices the cafe for each event and has other clients. [1] (c) A cashier is employed at Harbourgate for the six-week summer period only. [1]

3. At Ivy Gate Cafe the owner has two managers. The kitchen manager is directly in charge of 6 staff. (a) State the kitchen manager’s span of control. [1] (b) Define the term delegation. [2] (c) Explain one effect a flat structure may have on communication. [2]

4. Last year Harbourgate Garden Centre made a profit of £82,500. It shares 6% of profit equally among its 11 permanent staff. Calculate the amount each member of staff receives. [3]

5. Harbourgate pays shop assistants a bonus of 2.5% of the sales above £48,000 each month. Sales in July were £61,600. Calculate the bonus. [3]

6. Ivy Gate wants to tell all 14 staff that opening hours will change next month. Explain one advantage and one disadvantage of using email rather than a meeting. [4]

7. Ivy Gate Cafe now has an active social media page and a website. Analyse one way this digital communication may influence the cafe’s business activity. [4]

8. Harbourgate needs a trained plant specialist. No current employee has the skill. Identify two selection methods it could use and explain why one of them suits this post. [4]

9. Ivy Gate recruited for a kitchen assistant post. Replacing one leaver costs £450 in advertising, 8 hours of interview time at £25 an hour and 20 hours of induction at £16 an hour. (a) Calculate the cost of replacing one leaver. [3] (b) Four leavers are expected this year. Calculate the total cost and explain one way better motivation might reduce it. [3]

10. Ivy Gate sends 4 baristas on a one-day off-the-job course. The fee is £150 each and each barista would have earned the cafe £70 of sales that day. (a) Calculate the total cost to the cafe. [2] (b) Explain one other benefit to the business of staff development. [2]

11. Harbourgate is writing an advert and contracts for new staff. Explain two ways legislation on employment may affect what it does. [4]

12. The owner of Ivy Gate must fill the head chef post. The sous chef wants promotion, but an outside chef with new menu ideas has applied. Evaluate whether the post should be filled internally or externally. [8]

Answers

1. Any two of: to replace employees who leave; because the business is growing and needs more staff; to fill a skill gap [1] [1]. [2] Examiner insight: A “state” question needs only the point, so extra explanation earns nothing; give two clearly different reasons rather than one reason worded twice.

2. (a) Part-time [1]. (b) Self-employed [1]. (c) Temporary work [1]. [3] Examiner insight: Match each label to the stem detail; answers such as “casual” are vaguer than the terms in the specification and may not be rewarded.

3. (a) 6 [1]. (b) Passing a task [1] together with the authority to carry it out to someone lower in the structure [1]. (c) A flat structure has fewer levels [1], so messages pass through fewer people and arrive faster and with less distortion [1]. [5] Examiner insight: A definition needs the idea that authority is passed on as well as the task, and an effect on communication should be developed beyond “it is quicker”.

4. Profit shared: 6% of £82,500 = £4,950 [1]. Divide by 11 staff [1]: £450 each [1]. [3] Examiner insight: Show the pool before dividing, so a slip in the second step does not hide correct method.

5. Sales above target: £61,600 - £48,000 = £13,600 [1]. 2.5% of £13,600 [1] = £340 [1]. [3] Examiner insight: The bonus applies only to sales above the target; taking 2.5% of all sales is a frequent slip and gives a much larger wrong answer.

6. Advantage: email reaches all 14 staff at once and leaves a written record [1] so nobody can claim they were not told [1]. Disadvantage: staff may not read it promptly or may misread the tone [1], and questions cannot be answered at once as in a meeting [1]. [4] Examiner insight: Both sides must refer to email compared with a meeting; a general statement about email alone does not answer the comparison.

7. Any one developed chain: the social media page lets Ivy Gate reach local customers cheaply [1], so more people may learn about offers and visit [1]; customers can also post comments publicly [1], so the cafe must reply quickly or complaints may damage its reputation [1]. Alternative: the website gives opening times at any hour, reducing phone calls. [4] Examiner insight: “Analyse” asks for a linked chain from method to effect to consequence for this business; naming social media and stopping earns little.

8. Any two of: CV, application form, letter of application, interview, tests, group activities, references (1 mark for each method identified) [2]. Explanation, for example a test, because it checks the plant knowledge directly [1] and nobody can be assumed to have it from a CV alone [1]. [4] Examiner insight: The reason must link to this post: the stem says the skill is missing, so a method that checks skill is stronger than a generic reason.

9. (a) Interviews 8 × £25 = £200 [1]; induction 20 × £16 = £320 [1]; total £450 + £200 + £320 = £970 [1]. (b) 4 × £970 = £3,880 [1]. Better motivation means staff are more likely to stay [1], so fewer leavers and less advertising, interviewing and induction to pay for [1]. [6] Examiner insight: Each cost element should be shown separately, and the motivation point must lead to fewer leavers, not just happier staff.

10. (a) Fees 4 × £150 = £600 [1]; lost sales 4 × £70 = £280, so total £880 [1]. (b) For example, more skilled staff improve customer service [1], which can raise sales or repeat visits [1]. Other valid: motivation and retention. [4] Examiner insight: Include the lost sales as a cost as well as the fee; the stem gives the figure for that purpose.

11. Two developed points, 2 marks each. Discrimination: the advert and selection must be based on ability to do the job [1], so Harbourgate must avoid wording or questions that treat people unfairly [1]. Right to a contract: new staff must receive a contract setting out terms [1], so the business needs the paperwork ready at the start [1]. Alternatives: holidays and hours of work affect planning of rotas. [4] Examiner insight: Keep the law general, then say what the business must do as a result; naming exact Acts or figures is not needed.

12. For internal: it is cheaper and quicker, and the sous chef is known and understands the cafe and its customers [1]; promotion may motivate the kitchen team and help retention [1]. For external: the outside chef brings new menu ideas that might attract customers [1]; there is a wider choice of skills [1]. Against internal: it leaves a vacancy and gives no fresh ideas [1]. Against external: it is slower and costlier and the person is less known [1]. Judgement: a reasoned decision referring to the cafe, for example promotion is likely better if the current menu sells well and the team is settled, but external is better if the cafe needs to change direction [1], with a reason why that deciding factor matters most [1]. [8] Examiner insight: Weigh both routes and finish with a choice that cites the cafe’s own situation; a verdict that just repeats one side with no reason earns little.

Where marks are usually lost

• Writing a list when the command word is explain or analyse.
• Giving a calculation answer with no working or no units.
• Applying a percentage to the full amount rather than the part the stem names.
• Mixing up span of control and chain of command.
• Describing a method generally instead of using the case study.
• Treating “good pay” as non-financial.
• Not weighing both sides in an evaluate question.
• Describing employment law in detail you cannot be sure of instead of its general impact.

Frequently asked questions

What does section 3 People cover in OCR GCSE Business J204? Section 3 of OCR GCSE (9-1) Business (J204) covers the role of human resources, organisational structures and ways of working, communication, recruitment and selection, motivation and retention, training and development, and employment law.

How do you avoid mistakes in bonus and profit-sharing calculations? Apply the percentage only to the part of the amount the question names, such as sales above a target, rather than to the full figure. Show your working and give the answer in pounds.

How do you answer a question about choosing between an internal and an external candidate? Weigh the benefits of each for the business in the case, such as the internal candidate already knowing the business against the outside candidate bringing new skills or ideas. Finish with a supported recommendation.

Next steps

• People revision notes and People study guide
• OCR GCSE Business hub and printable checklist
• All free 10-minute diagnostics
• Book a free trial class: trial

Official syllabus

OCR GCSE (9-1) Business J204, Version 2.0 (January 2026), published by OCR, section 3 People.