The size of a business units tends to be small if the activity?
Answer Details
The size of a business unit tends to be small if the activity involves the provision of direct services. This is because providing direct services often requires a personal touch and a high degree of customer interaction, which can be difficult to manage on a large scale. Additionally, service-based businesses often have lower capital requirements compared to those involved in mass production, making it easier for small businesses to enter the market. However, this may not be true for all service-based businesses, as some may require significant capital investment, such as those in the healthcare or transportation industries.