REASONS FOR BUSINESSES TO GROW

Question 1

Survival

Answer 1

Larger businesses are less likely to fail and get taken over by another business.

Question 2

Advantages of Economies of scale

Answer 2

Larger businesses are able to enjoy economies of scale advantages such as having an easier access to external finance.

Question 3

Higher Status

Answer 3

Larger businesses have a higher status and are more known than smaller businesses which helps them attract more specialized top-notch employees and have them be motivated.

Question 4

Market Leader Status

Answer 4

Larger businesses are more likely to become the leaders in the market they operate in (example: Mc.Donald’s) and thanks to this they can shape market habits and play with it in their advantage to reduce competition.

Question 5

Increased Market Share

Answer 5

Larger businesses have a greater market share than smaller ones and thanks to it they can decide prices and what the standar services of the industry are.