Business A-Level
constraints on small firms
What constraints on small firms means in Business A-Level, as defined for AQA.
Definition of constraints on small firms
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Reference: AQA
A small firm has fewer options than a large one because it holds less security, has less bargaining power over suppliers and cannot turn to a rights issue.
Topics that use constraints on small firms
Related terms
- cash flow versus profit
- credit control
- debt factoring
- margins and return on capital employed
- price elasticity of demand
- profit versus profitability
- supplier bargaining power
- conflict between cash and profit
Using constraints on small firms in the exam
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