Question

What determines the scope of the firm?

Answer 1

Answer-The main elements which determines the scope of the firms are-

1.Product scope -It is a type of firm scope which determines the specialization of the firm in terms of the range of the products it supplies is noted down.

2.What business are we in ?-It means the firm is involved in which type of production process, whether they are making less demanding products in the market or high demanding products in the market.

3.Geographical scope-It determines the geographical spread activities of the firm, geographical scope also determines that whether the firm is working in domestic market or into the global markets.

4.Targeted customers or market-It means what kind of targetted customers and market ,the firm is looking for ,it can be for the luxurious customers or they can produce for the lower section of the society too,it determines the segment of the firm.