Question 45
Business OrganisationsSmall enterprises find it difficult to expand due to
- A.inadequate capital
- B.lack of skilled manpower
- C.the high level of technology required for expansion
- D.their inability to provide after-sales services.
Show the answer and explanation
Answer: A (inadequate capital)
Explanation
The main problem of small firms is lack of capital, since they depend on the owner's savings and find bank loans hard to get.