Micro A2 - Sizes & Types Of Firms Flashcards
1
Q
Reasons why firms grow?
A
Greater profits
Greater market share
Benefits from Economies of Scale
2
Q
Reasons why not to grow?
A
Cash might not be available
Diseconomies of scale
Complicated to run/manage
3
Q
What is the Principle agent problem.
A
4
Q
Distinction between public and private sector organisations
A
5
Q
Distinction between profit and not-for-profit organisations
A
