Net assets show the value of what the business owns after liabilities are taken into account. Net current assets is current assets minus current liabilities. When you add fixed assets to net current assets, you’re combining the business’s long-term resources with its surplus after short-term obligations, which represents the overall asset position available to the owners. In a simple balance sheet (with no long-term liabilities), this total equates to net assets. For example, if fixed assets are 300 and net current assets are 100, the combination is 400, which is the net assets (the owners’ claim on the assets after liabilities).

Span of control is the term used to describe how many people a manager directly supervises. It matters because it defines how many direct reports a manager has, which influences supervision quality, communication, and the structure of the organization. A wider span means more people reporting to one manager, often resulting in a flatter organization; a narrower span means fewer direct reports and a taller hierarchy. The other terms describe different ideas: chain of command is about who has authority and the reporting lines, subordinates are the people who report to a manager, and net pay is the take-home salary after deductions.

On a balance sheet, the money put in by the owners is recorded as capital. This represents the funds shareholders have invested in the business and sits in the equity section of the balance sheet. It changes when owners inject more money or when profits are retained or distributed. It’s not current liabilities (short-term debts) or net current assets/working capital (the difference between current assets and current liabilities); it also isn’t the general net assets concept, which is assets minus liabilities. So the term for shareholder-provided funds is capital.

This question tests marketing economies of scale. Advertising in mass media is a fixed cost—the expense is incurred regardless of how many items are sold. As a business increases its output and sales, that fixed advertising cost can be spread over a larger number of units or people reached, so the average cost per unit (or per person) falls. Large firms can afford to pay for broad campaigns, making the per-person cost lower as volume rises. The other types of economies don’t describe this effect. Purchasing economies come from cheaper input costs by buying in bulk, financial economies come from better borrowing terms, and administrative economies come from spreading overheads more broadly. The scenario specifically highlights the cost-reduction from spreading a fixed marketing expense over more units, which is why marketing economies of scale is the best fit.