After reading this article you will learn about the economies and disadvantages of large firm. Economies of Large-Scale Operations: Different economies available to a large firm may be summed up as under: Technical Economies: 1. Large firms can install new machines, automatic appliance and adopt other means of superior technology because it is economical to do so if they are [...]
This article throws light upon the top five methods used for reconciliation of differing optima of firm. 1. If the technical optimum is greater than the managerial optimum, the gap has to be covered by measures aiming at enhancing managerial efficiency. Or the firm has to split the productive organisation into different separate departments in order to take advantage of [...]
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 [...]