Define the term 'scale of operation'.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2021). The mark or mark type is shown in brackets.

1. [1] the maximum output that a business can achieve
2. [1] using available inputs/resources
3. [1] can increase in the long-term only by using more resources
4. [1] size of business
5. [1] level/amount of output
6. aims and objectives of the owners – keep small or expand
7. capital available to invest in larger-scale operations
8. the strength of demand in the market in which the business operates
9. the size of the existing business
10. the number of competitors – effect on market share potential
11. the opportunities for economies of scale may determine the scale of operations - some businesses may need to have a large-scale operation
12. availability and impact of machines/automation
13. number of employees
14. efficiency and motivation/productivity of labour
15. availability and amount of raw materials
16. depends on the market being targeted, i.e. mass/niche
17. external factors, e.g. recession, inflation
18. Accept any other valid response.
19. [3] Sound explanation of two factors that could influence the scale of operation of a business.
20. [2] Sound explanation of one factor or partial explanation of two factors.
21. [1] Partial explanation of one factor or a list of two factors.