OCR GCSE Business sample questions and answers (J204)
Guide overview All 6 topics Sample questions Papers and weighting Look inside Questions and answers
30 sample questions and answers
Taken from every topic of OCR GCSE Business, specification J204. The full guide has 582.
Component 01
Business Activity
95 questions in the guide, across 6 subtopics. More from this topic
-
Enterprise and entrepreneurship
Why must an entrepreneur develop an idea before launching a business?
Show the answer
Development turns a rough idea into a product customers will buy at a price that covers its costs. A test of the idea at this stage can reveal problems before money is spent. -
Enterprise and entrepreneurship
Explain the concept of risk and reward in business.
Show the answer
Risk is the chance that a business will fail and the owner will lose money. Reward is the return for taking that risk, such as profit and personal satisfaction. -
Business planning and the business plan
Why does a bank usually ask to see a business plan before lending?
Show the answer
A business plan shows the bank how the loan will be used and how it will be repaid. The bank can judge the risk of lending from the forecasts. -
Business planning and the business plan
Why do investors want to see market research in a business plan?
Show the answer
Market research shows investors that there is real demand for the product. Evidence of demand makes the investment less risky. -
Sole traders, partnerships and limited companies
State two disadvantages of a partnership.
Show the answer
Partners can disagree about how the business should be run. Most partners have unlimited liability, so each can lose personal assets to pay the business's debts.
Component 01
Marketing
110 questions in the guide, across 7 subtopics. More from this topic
-
The purpose of marketing
Why is informing customers especially important when a product is new?
Show the answer
Customers cannot buy a product they have never heard of. A launch campaign builds awareness so that early sales can begin. -
The purpose of marketing
Why do businesses try to build customer loyalty?
Show the answer
A loyal customer buys again and again without being persuaded each time. An existing customer is usually cheaper to keep than a new one is to attract. -
Primary and secondary market research
What is a focus group?
Show the answer
A focus group is a small group of target customers who discuss a product in depth with a researcher. -
Primary and secondary market research
What is internal data?
Show the answer
Internal data is information a business already holds, such as sales records, customer databases and loyalty card data. -
Market segmentation
Why is income a useful way to segment a market?
Show the answer
Income decides how much customers can afford to spend. A car maker can offer budget models for low incomes and luxury models for high incomes.
Component 01
People
110 questions in the guide, across 7 subtopics. More from this topic
-
The role of human resources
Why does a growing business need to plan its human resources carefully?
Show the answer
New branches or products need extra staff who must be recruited and trained in advance. Too few staff can lead to poor service and lost sales. -
The role of human resources
How does human resources help a business keep to employment law?
Show the answer
Human resources makes sure contracts, pay, hours and holidays meet legal requirements. A breach of employment law can lead to fines, tribunal claims and bad publicity. -
Organisational structures and ways of working
What is the chain of command?
Show the answer
The chain of command is the line of authority through which instructions pass from the top of a business to the bottom. -
Organisational structures and ways of working
What is flexible working?
Show the answer
Flexible working lets employees vary when or where they work, such as flexitime or job sharing. Employees in Great Britain have been able to request flexible working from day one since April 2024. -
Communication in business
When might a business use text messages to communicate?
Show the answer
A business might text customers short reminders, such as appointment times or delivery updates. Texts are read quickly because most people carry a phone.
Component 02
Operations
109 questions in the guide, across 7 subtopics. More from this topic
-
Production processes
What are the disadvantages of batch production?
Show the answer
Machinery stands idle while it is cleaned or reset between batches. Each batch must also be stored until it is sold, which ties up cash. -
Production processes
How are computers used in the design and making of products?
Show the answer
Computer-aided design (CAD) lets designers create and test products on screen. Computer-aided manufacture (CAM) uses those designs to control the machines that cut and shape materials. -
Quality of goods and services
What is the key difference between quality control and quality assurance?
Show the answer
Quality control detects faults after they have occurred. Quality assurance aims to prevent faults from occurring in the first place. -
Quality of goods and services
Explain what is meant by a product recall.
Show the answer
A product recall is when a business asks customers to return a product already sold because it is faulty or unsafe. A recall is costly and damages the brand's reputation. -
The sales process and customer service
What is e-commerce?
Show the answer
E-commerce is the buying and selling of goods and services online, through a website or an app. Customers order and pay without visiting a shop.
Component 02
Finance
97 questions in the guide, across 6 subtopics. More from this topic
-
The role of the finance function
How does the finance function influence the marketing department?
Show the answer
The finance function sets the marketing budget and checks whether campaigns are affordable. A campaign may be cut back if it does not pay for itself. -
The role of the finance function
Why does the finance function keep a close watch on cash?
Show the answer
The finance function makes sure the business always has enough cash to pay its bills on time. A shortage can be planned for, for example by arranging an overdraft. -
Sources of finance
What is an overdraft?
Show the answer
An overdraft lets a business take more money out of its bank account than it holds, up to an agreed limit. Interest is charged only on the amount overdrawn. -
Sources of finance
How can a business raise finance from the sale of assets?
Show the answer
A business can raise cash by selling property, machinery or vehicles it no longer needs. The cash carries no interest, but an asset can only be sold once. -
Revenue, costs, profit and loss
A market stall has monthly revenue of £4,200 and total costs of £4,650. Has it made a profit or a loss, and of how much?
Show the answer
The stall has made a loss of £450. £4,200 − £4,650 = −£450.
Component 02
Influences on Business
61 questions in the guide, across 4 subtopics. More from this topic
-
Ethical and environmental considerations
What is Fairtrade, and why do some businesses sell Fairtrade products?
Show the answer
Fairtrade guarantees producers in developing countries a minimum price and an extra premium for community projects. Fairtrade products show customers that a business sources ethically. -
Ethical and environmental considerations
How can business activity cause pollution?
Show the answer
Factories can release harmful gases into the air and waste into rivers. Delivery lorries and flights add to air pollution and noise. -
The economic climate
Why might a discount retailer do well when consumer incomes fall?
Show the answer
Customers switch from expensive brands to cheaper alternatives to save money. Budget supermarkets and discount stores gain customers from dearer rivals. -
The economic climate
What is a recession?
Show the answer
A recession is a period when the economy shrinks, output falls and unemployment rises. A recession is usually defined as two consecutive quarters of falling national output. -
Globalisation and multinational companies
Why do multinationals set up production in other countries?
Show the answer
Wages, land and other costs may be much lower abroad. A factory inside a market also avoids import tariffs and cuts delivery times.
OCR GCSE Business Active Recall Guide
The other 552 questions, with the answers printed after each section.