OCR GCSE Business Studies Operations, finance and influences on business June 2025 question paper J204/02

Which is not an example of ethical behaviour for a restaurant?

A Donating left-over food to charity

B Employing young children as waiters

C Ensuring ingredient suppliers are paid on time

D Paying the chef more than the average wage

One advantage for a business of automating its operations is:

A higher maintenance costs

B improved quality

C lower productivity

D no training will be required

Consumer law requires manufacturers to produce goods which are:

A ethical

B popular

C profitable

D safe

Since changing to a cheaper milk supplier six months ago, a cheesemaker has received an increasing number of complaints about the taste of the cheese. The business is now losing customers.

Which action would help the cheesemaker deal with this problem?

A Contacting the current milk supplier to negotiate further price discounts

B Explaining on social media that the business needs to use cheaper milk

C Putting up signs that say the recipe for the cheese has not changed

D Switching to another supplier that can provide the correct quality of milk

Which source of finance allows goods to be obtained without immediate payment to the supplier?

A Crowdfunding

B Overdraft

C Sale of assets

D Trade credit

An extract from a shop’s cash flow forecast for July is shown below.

The shop’s closing balance for July is expected to be:

A –£7800

B –£3200

C £3200

D £7800

Which task is likely to be part of the role of procurement at a hotel?

A Analysing room occupancy figures

B Cleaning the bedrooms

C Greeting guests on arrival

D Ordering toiletries and towels

Last year a building firm sold six houses at an average price of £300 000 per house. The costs for the business were:

• variable costs = £32 000 per house

• fixed costs = £130 000 per calendar month.

Last year the building firm made a profit of:

A £48 000

B £138 000

C £208 000

D £1 478 000

The finance department of Clabton Products Ltd has failed to authorise a large payment owed to their logistics supplier.

The most likely consequence of this is:

A deliveries to customers may be delayed

B less storage space may be needed

C staff training opportunities will be reduced

D Clabton Products Ltd will need a bank loan

Financial data for a sole trader who makes guitars is shown below.

• Fixed costs = £9435 per year

• Variable costs = £35 per guitar

• Selling price = £120 per guitar

How many guitars does the sole trader need to make and sell in a year to cover total costs?

A 61

B 79

C 111

D 273

Ariel and Umi are business partners. They have some important decisions to make about their business. They have produced cost and revenue data for the business’ first four years of trading.

This data is useful to Ariel and Umi when making business decisions because it shows that the business:

A gained market share in all four years of trading

B has not reached its break-even quantity in any of its first four years

C made a small net profit in Year 3 and a larger net profit in Year 4

D needs an overdraft

A book shop has a gross profit margin of 60%.

This means that:

A for every £1000 of books sold, the shop made a gross profit of £400

B for every £1000 of gross profit, the cost of the books sold was £600

C for every £1000 of gross profit, the shop had revenues of £600

D for every £1000 of revenue, the cost of the books sold was £400

A crisp manufacturer is considering shortening its supply chain.

What is most likely to encourage the crisp manufacturer’s shareholders to vote for this course of action?

A The ability to recall unpopular flavours

B The chance to increase the cost of ingredients

C The opportunity to increase risks to reputation

D The possibility of gaining high financial rewards

Sales figures for a sole trader for the last three years are shown below.

The sole trader is completing an application form for a bank loan. The form asks for the business’ average revenue over the last three years.

What figure should the sole trader put on the form?

A £13 667

B £21 000

C £21 750

D £42 000

The concept of quality requires a plumber to mend a leaking toilet:

A as soon as possible

B in the simplest way possible

C to a reasonable standard

D with reasonable care

Text 1

_{Adapted from www.drmartensplc.com/sustainability/ and www.drmartensplc.com/sustainability/product/. Item removed due to third party copyright restrictions.}Dr Martens plc

In 2023 DM’s accounts showed the data below.

Fig. 1 Selected financial data for Dr Martens plc 2023

State two production processes.

State two reasons why a business may aim to be environmentally friendly.

Calculate DM’s net profit margin for 2023 to two decimal places.

Show your workings.

........ %

Analyse one reason for DM of using the financial data in Fig. 1 to make decisions about how to meet its sustainability objectives.

Explain one way climate change may affect a business.

Analyse one disadvantage for DM of changing the supply chain for leather to meet its sustainability objectives.

Analyse one advantage for DM of changing its packaging to meet its sustainability objectives.

Recommend which of the two sustainability objectives (the supply of leather or the change in packaging) DM should prioritise.

State one reason why customer service is important to a business.

State two advantages to a business of having an overdraft.

Explain why cash is important to a business.

Calculate the average rate of return (ARR) for the new coffee machine.

Show your workings.

........ %

Analyse the change in the cost of the pizza dough between 2022 and 2024.

State two factors that influence where to locate a business.

Discuss whether Riley should relocate to a restaurant or continue to operate from the caravan.

Text 3

_{Adapted from www.computerweekly.com/news/366555332/Gymshark-turns-to-Google-Cloud-for-infrastructure-revamp-and-generative-AI-trials and www.retailgazette.co.uk/blog/2022/10/gymshark-ben-francis-ipo-sale/ and uk.gymshark.com/pages/about-us and en.wikipedia.org/wiki/Gymshark a}Gymshark Ltd

State one method of selling.

Analyse one likely impact on Gymshark Ltd’s customer service of using technology such as Artificial Intelligence (AI) within its app.

Analyse one advantage for Gymshark Ltd of operating as a multinational company (MNC).

Analyse one advantage and one disadvantage for Gymshark Ltd of raising additional finance by issuing shares.

Recommend whether Gymshark Ltd should use a share issue or retained profit to fund future expansion.

* Evaluate whether the economic climate is likely to affect Gymshark Ltd’s marketing decisions.