The Advantages of a Large Business
1. Diversified Ways to Generate Revenue
When evaluating the pros and cons of big business, one of the major advantages of large firms is that they are able to establish multiple revenue streams to help offset economic downturns
2. Greater Brand Recognition
In the digital age, “branding” has become the buzzword of every business, from startups to multinational organizationsMore Attractive
3. Compensation Packages
Large business owners can also offer strong compensation packages when they make job offers, which means higher salaries, more attractive bonuses, greater allowances benefits, and other perks.
4. Opportunities for Economies of Scale
Another major advantage that large-scale businesses have is that of economy of scale. Vendors and suppliers are much more likely to provide discounts to companies that purchase in large quantities
What Are Some Various Constraints that Firms Face in Maximizing Their Economic Profit?
1. Supply Costs
Businesses have costs for supplies used in operation or products purchased for resale. Manufacturers buy raw materials for production, and distributors and retailers buy finished goods for resale.
2. Production Processes
Companies typically have production or operational processes to prepare products and services for customers. For manufacturers, this involves converting raw materials to finished goods.
3. Market Size
Larger customer markets typically lead to opportunities for greater sales volume and more revenue.
4. Demand
Along with a sizable market, you need to generate demand from customers to achieve revenue and high price points
