After reading this article you will learn about:- 1. Definitions of the Size of a Firm 2. Measures of Size 3. Concepts. Definitions of the Size of a Firm: In an industry there are firms of varying sizes. The costs of production in these firms of different sizes vary. Economists are concerned with the best size of a business unit, [...]
The factors that determine the best size of the business units (the optimum size of the firm) are studied under the following five groups: 1. Technical Factors 2. Managerial Factors 3. Financial Factors 4. Marketing Factors 5. Factors of Risks and Fluctuations. 1. Technical Factors: Technological factors underline the need for enlarging the scale and size of operations of a [...]
This article throws light upon the financial needs of public sector enterprise. The financial needs are: 1. Equity Capital 2. Loans 3. Internal Resources 4. Capital Market 5. Arranging Working Capital. Public Sector Enterprise: Financial Need # 1. Equity Capital: Public enterprises have large equity base. Since they are owned by the government, the initial capital is also provided by [...]