Question
Give four reasons for continued survival of small-scale firms in an economy despite the dominance and direct competition from large-scale firms.
Answer
- Where the size of the market is small.
- The nature of the product may require that it be produced in small quantities.
- Simplicity of the organization.
- Flexibility of small firms.
- Belief that small firms are more manageable.
- Where production cost rise steeply when production quantities increases.
- Need to retain control.
- To avoid legal formalities associated with large scale organization.
- The nature of the product may require that it be produced in small quantities.
- Simplicity of the organization.
- Flexibility of small firms.
- Belief that small firms are more manageable.
- Where production cost rise steeply when production quantities increases.
- Need to retain control.
- To avoid legal formalities associated with large scale organization.
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