1st of February 2013 Business organization and management Business size Small business: e.g. Independent service-station, restaurant Medium business: e.g. coffee club, nando’s Large business: Maccas, red rooster, kfc Economies of scale; this term refers to the lower costs per unit of output as a result of operating on a larger scale. Question 1. What is meant by economies of scale? Provide 3 examples of typical economies of scale enjoyed by large organizations: a) Coles (big…
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