The main advantage of large scale production is that
Unit cost of production falls
Decision-making is quick
Worker-managemnet relationship is improved
The quality of the product increases
Correct answer is A
One of the main advantages of large scale production is economies of scale. That is a proportionate saving in costs gained by an increased level of production.
The large scale production reduces the cost of production to a considerable extent. For instance, assuming a manufacturing company consumes 50 litres of fuel to produce 1000 units of a product. The company would most likely use same 50literes of fuel in the production of 1500 units of output.
86 units
80 units
76 units
74 units
Correct answer is D
No explanation has been provided for this answer.
Which of the following controls a limited liability company?
The general manager
The managing director
Tax payers
The board of directors
Correct answer is B
Managers or managing members or Managing Director are responsible for the management of the company, rather than a board of directors. Managing members of an LLC operate like a corporate board of directors.
The following are advantages of sole proprietorship except
Quick and easy decision-making
Keeping its business affairs private
Assurance of raising huge capital for expansion
High level of commitment
Correct answer is C
A sole proprietorship business does not have an assurance of raising huge capital for expansion, as a matter of fact, they rely on grants and loans from friends and family, plough back profit and personal savings for expansion.
Which of the following statements is not a feature of a monopoly?
Seller is allowed to fix his own price
Buyers and sellers are price takers
New entrances are restricted
There is only one seller of the commodity
Correct answer is B
A monopoly market is characterized by the profit maximizer, the seller is the price maker, high barriers to entry, single seller, and price discrimination.