Author Question: What are the primary day-to-day challenges involved with growing a firm? Briefly describe each ... (Read 594 times)

torybrooks · **on:** Jul 6, 2018

What are the primary day-to-day challenges involved with growing a firm? Briefly describe each challenge.

What will be an ideal response?

Question 2

________ is the granting of permission by one company to another company to use a specific form of its intellectual property under clearly defined conditions.

A) Verifying
B) Confirming
C) Endorsing
D) Licensing
E) Certifying

jgranad15 · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

The primary day-to-day challenges involved with growing a firm are cash flow management, price stability, quality control, and capital constraints. In regard to cash flow management, as a firm grows, it requires an increasing amount of cash to service its customers. In addition, a firm must carefully manage its cash on hand to make sure it maintains sufficient liquidity to meet its payroll and cover its other short-term obligations. In regard to price stability, if a firm's growth comes at the expense of a competitor's market share, a price war can result. In regard to quality control, as a firm handles the increase in activity that accompanies growth, unless it is careful, quality can suffer. Finally, in regard to capital constraints, growth often requires the expansion of a firm's facilities, which is difficult because purchasing or building facilities takes capital.

Answer to Question 2

D