When a business increases its size of operations and becomes more cost efficient, this is known as economies of scale.

• True

• False

an acronym standing for social, technological, economic, environmental, political, legal and ethical external factors that impact on business; it refers to a framework for analysing the external environmental factors affecting business objectives and strategies.

Diseconomies of scale occur if a firm grows beyond its ability to operate efficiently.

• True

• False

Which is an economic factor for a STEEPLE analysis?

• exchange rate

• weather and climate of the region

• type of government that exists

• law influencing business activity

The ability of a large business to negotiate lower rates of interest on loans with commercial banks is an example of purchasing economies of scale

• True

• False

Being unable to offer a more specialized and exclusive service to customers is a disadvantage of being a business that operates on a large scale .

• True

• False

Ethics is one component or factor of a STEEPLE analysis

• True

• False

When one business buys out another business to become a single but larger company, this is known as a merger.

• True

• False

Purchasing economies of scale are when suppliers offer substantial discounts for large orders

• True

• False

Diseconomies are related to the management problems of trying to control and direct an organization with many thousands of workers, in many separate divisions, often operating in several different countries. 

• True

• False