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what are the methods of measuring firms?
turnovers
employees
balance sheets (money invested by owners!)
what are the adv and disadv of small firms?
adv | disadv |
|---|---|
flexibility: adapts to change | high costs: they cant exploit EOS |
personal services: more precise due to less workers | lack of finance: struggle, cant have lots of sources |
low wage costs: they can limit it to the legal minimum wage | less attraction: its hard to find qualified staff, lack of resources 2 attract |
better communication cause less employees | vulnerability: risk of takeovers |
innovation (more creativity) |
what are the adv and disadv of large firms
adv | disadv |
|---|---|
EOS : low average cost | too bureaucratic |
market domination | coordination + control (too much) |
large scale contracts (higher power, resources) | poor motivation (too large = alienation) |
how does the govt influence growth?
they monitor businesses so individuals dont get overpowered
prevents firms from getting too big
investigate and merge firms
how does access to finance influence growth
they need money to grow
the firms persuade money lenders and investors
how does spreading risk influence growth?
basically producing lots of products so if one fails ur still getting lots of profit
how does the desire to take over influence growth?
to grow, businesses literally take over rivals to reduce competition
what are some reasons why firms are small?
some firms are too small in a large market, for ex; market for yachts is limited 2 only few rich people can buy it, so it struggles to grow in large orgs
set up costs are low but fierce competition stops them from growing
the small market fills gaps the big ones cant provide for
some businesses dont have enough money to raise the finance and expand
some businesses need investment and resources but cant convince them
some dont wanna grow (happy w less workers and small amount)
DEOS
Note 
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