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JAMB Economics 1989 Question 21

Question 21

Business Organisations

The size of a business unit tends to be small if the activity

  1. A.involves mass production of goods
  2. B.requires a large capital
  3. C.requires division of labour
  4. D.involves the provision of direct services.
Show the answer and explanation

Answer: D (involves the provision of direct services.)

Explanation

Direct personal services, such as hairdressing or tailoring, need close personal attention, so the firms stay small.