Business 7115 · O Level · Enterprise, business growth and size

Enterprise, business growth and size — practice question

(a)[8]

As Ghaziz and Jasmin intend to grow their business, identify and explain one economy of scale and one diseconomy of scale that could arise as the business expands.

(b)[12]

GJ is launching a new service. Jasmin wants to appoint a manager. Consider the advantages and disadvantages of internal and external recruitment. Recommend which recruitment method Jasmin should choose. Justify your answer. Internal recruitment. External recruitment. Recommendation.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Buying in bulk/purchasing in large quantities - lower prices on materials/equipment

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