able to get discount and reduce their average cost. Suppliers also prefer the large firms because of the large orders they place. Security of the suppliers id therefore being assured.
(b) Selling: Large firms also enjoy the advantage of selling. They employ expert salesman or sellers, use market research, advertise extensively, they have their own showrooms, display centres and catalogues which helps to increase the number of customers. With an increase in sales the profit goes on rising.
4. Financial Economies: Large firms normally operate as joint stock company and are able to raise large finance by selling shares and debentures. Financial institutions such as banks and lending organizations prefer large firms because of their credit worthiness. They give loans and interest at favourable rate of interest compared to small firms who formed to be less creditworthy borrowers. Financial solvency helps the firms to have co
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