A possible factor which limits the extent of growth of a firm is the?

Assessment: JAMB UTME - Economics - 1991 Subject: Economics

Question 1 Report

A possible factor which limits the extent of growth of a firm is the?
Answer Details
A possible factor which limits the extent of growth of a firm is the unwillingness to share ownership and control. When a firm is experiencing growth, it may require additional capital, expertise, and other resources to continue expanding. One way to access these resources is through sharing ownership and control with other investors or partners. However, some firms may be reluctant to share ownership and control due to concerns about losing autonomy or diluting their ownership stake. This can limit their ability to access the resources necessary for further growth. Alternatively, firms may seek to finance their growth through debt or other means, but this can also have limitations. Excessive debt can increase financial risk and make it difficult to obtain additional financing in the future. In summary, the unwillingness to share ownership and control can limit the extent of growth of a firm, as it may limit access to the resources necessary for continued expansion.

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