Can Economies of Scope Exist in a Very Small Business

question 25

Multiple Choice

Can economies of scope exist in a very small business?

• A)No. Only large businesses can be sufficiently large to accrue such benefits
• B)Yes. For example, a village shop which is also a post-office
• C)It is unlikely that the managers of such a small business would understand the theory enough to apply it
• D)Theoretically yes, but they are very rare

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Definitions:

Temporal Schemas

Cognitive structures that enable understanding and organization of events based on time, aiding in memory and anticipation of future events.

Personal Construct

A psychological theory proposing that individuals organize their experiences and view the world through unique, personal systems of constructs.

Cultural Influences

The ways in which the values, beliefs, and practices of a culture shape and impact individuals' behaviors and perceptions.

Psychological Need

An inherent aspect of mental well-being that motivates behavior, such as the need for esteem, belonging, or achievement.