ENTR 20000 Chapter Notes - Chapter 13: Niche Market, W. M. Keck Observatory, Moral Hazard
14 Apr 2019
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Preparing for and evaluating the challenges of growth. Sustained growth-growth in both revenues and profits over a sustained period of time. Warning that a business is growing too fast. Borrowing money to pay for routine operating expenses. Email and text messages starting to do unanswered. Operating is a crisis mode becomes the norm rather than the exception. Those working with the business"s financials structure are starting to worry. Pace of growth-rate at which is it growing on an annual basis. Need to accommodate the growth of key customers. Ability to attract and retain talented employees. Economics of scale-generated when increasing production lowers the average cost of each unit produced. Variable cost-costs a company incurs as it generates sales. Fixed costs-costs that are a company incurs whether it sells something or not. Economics of scope-the advantage a firm accrues comes through the scope of a firm"s operations rather than from its scale of production.
