The following points highlight the top two sources of growth of firms. The sources are: 1. Internal Growth 2. Mergers. Source # 1. Internal Growth: Many firms become large by generating internal growth. Marks and Spencer is an example. It started as a market stall selling clothes and still does this, though it has also diversified into other products. Other [...]
The following points highlight the eight things to determine before finalizing the location of a firm. The determinants are: 1. Personal Preference and Historical Factors 2. Transport Costs 3. The Cost and Skills of the Labour Force 4. The Cost of Renting Land 5. The Nearness of Power Supplies 6. The Nearness of Water Supplies 7. Good Infrastructure 8. The [...]
Beyond linearity, other simplifying assumption limits the advantages of break-even analysis; actual costs incurred(fixed and variable) are substituted for opportunity costs; the business environment is taken as static, that is factors other than volume affecting revenues and costs, such as demand and technology, are assumed to be insignificant; still more importantly, risk and uncertainly are ignored. However, some simple assumptions [...]