Question 32
Business OrganisationsWhich of the following is not true of small companies? They
- A.cannot benefit from economies of scale
- B.are a good source of new jobs.
- C.can satisfy demand in specialist markets.
- D.have a good record of technical innovations.
Show the answer and explanation
Answer: A (cannot benefit from economies of scale)
Explanation
Small firms do enjoy some economies of scale, so saying they cannot benefit at all is untrue; the other statements are true.