The traditional profit maximizing theories of the firm have been criticised for being unrealistic. As a result‚ alternative theories of the firm were introduced (Sloman & Sutcliffe‚ 2001). One of the alternative theories of the firm is Growth maximization. Following are the main motives for the firms to grow: The cost motive: A growth maximising firm can lower its long run average costs by exploiting economies of scale and economies of scope. Economies of scale come into effect when increasing
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A REPORT ON BUSINESS EXPANSION MARKET STRATEGY By VARUN SUDHAKARAN ENROLLMENT NO. : - 12BSP1363 BLUESQUARE MANAGEMENT CONSULTANTS INDIA PVT. LTD. A REPORT ON BUSINESS EXPANSION MARKET STRATEGY By VARUN SUDHAKARAN ENROLLMENT NO. : - 12BSP1363 BLUESQUARE MANAGEMENT CONSULTANTS INDIA PVT. LTD. A report submitted in partial fulfilment of the requirements of PGPM Program of IBS Bangalore Date of Submission: AUTHORISATION I Varun Sudhakaran‚ hereby declare
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be large when a. the total exceeds 100 b. no single buyer can affect the price through his or her demand for the product c. they cannot be easily counted d. no single seller can affect the price by changing its level of output e. no seller controls more than 20 percent of the total market supply 3. Which of the following is not a basic characteristic of a perfectly competitive market? a. a large number of buyers and sellers b. significant nonprice competition among firms c
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Four-Firm Concentration Ratio Definition of the Four- Firm Concentration Ratio This is one of the most common concentration ratios. The four-firm concentration ratio is commonly used to indicate the degree to which an industry is oligopolistic and the extent of market control held by the four largest firms in the industry. How would you describe an industry with 20 firms and the CR is 20% and its implications?
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* Research project on a advertising agency in Sri Lanka Value chain Analysis Primary activities Inbound logistics The inbound logistics of the Sovereiigns Intergrated (pvt) Ltd involve relationships with the suppliers of raw materials such as iron‚ metal & flex printing materials. The firm purchase iron & metal from Union Metals (pvt) Ltd which is located in close proximity to the company’s workshop in Gonawala‚ kelaniya & the flex printing materials are imported from the Flex Engineering
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Firm Entrepreneurship and Measures of Firm Entrepreneurship Activity The main hypothesis of the economic theory of entrepreneurship is that in the economy firm entrepreneurship contributes to production through the combination of the existing productive factors. Innovation and firm entrepreneurship are found to have positive economic effects mainly in terms of employment opportunities‚ taxation revenues and economic output. The measurements of these positive effects provide the basis of international
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Two large state-owned enterprises are swooping on the Hong Kong market with their long-awaited IPOs almost simultaneously this week‚ and the prospect of two large offerings is likely to cast a pall over the city’s stock market. The decisions by Sinopec Engineering and China Galaxy Securities to launch their roadshows separately came after the two large SOEs‚ tightly controlled by the Chinese government‚ both managed to secure strong support from some key cornerstone investors. Sinopec Engineering
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been myriad restrictions placed on professional service companies by the SEC and PCAOB. These companies are restricted on the nonaudit services that the company’s auditors can provide clients. If a service company provides auditing services for a particular company‚ they are restricted in terms of other services that they can provide. These restrictions were not always in place‚ but were created in order to increase and maintain the independence of auditors and the auditor’s clients. This independence
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Barriers to Entry of New Firms For a firm to maintain its monopoly position there must be barriers to entry of new firms. Barriers also exist under oligopoly‚ but in the case of monopoly they must be high enough to block the entry of new firms. Barriers can be of various forms. • Economies of scale. If a monopoly experiences substantial economies of scale‚ the industry may not be able to support more than one producer. • Network economies. When a product or service is used by everyone in
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Merrill Lynch is financing the business through Cash provided by financing activities – the operating activities loss is offset by increases in long-term borrowings. 1. Evaluate the cash position at year-end Report Date 12/28/2007 12/29/2006 12/30/2005 Cash & cash equivalents 41‚346‚000 32‚109‚000 14‚586‚000 The cash position of the firm increased by 120% in 2006 and 29% in 2007‚ giving the impression the firm was well capitalized. Further analysis of the cash-flow statement will prove
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