Business Growth Flashcards
1
Q
Why may a firm want to grow?
A
-make more sale and profit
-increase market power
-diversify and enjoy risk-bearing economies
-economies of scale
-owners objectives may be to grow their firm
2
Q
Why may a firm not want to grow?
A
-dont have finance to grow
-regulations limit growth
-niche markets
-diseconomies of scale
-profit-satisfice
3
Q
What might firms experience as they grow bigger
A
They might experience the divorce of ownership and control
4
Q
Types of firms
A
Public sector firms
Private sector firms
5
Q
What are public sector firms
A
Firms owned by the government eg the nhs and transport
