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How should businesses react when cost of production increases.
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[QUOTE="TOZZIBLINKZ, post: 269640, member: 37528"] Larger scale businesses are more likely to survive and pull through in times when the cost of production of goods and services are increased but on the other hand small scale businesses may not be able to survive when the cost of production of goods and services are increased . That is why in most times when cost of production increases many small scale businesses tend to go bankrupt liquidated or even shut down for some period of time until when cost of production is reduced or decreased . Despite this there is absolutely a possibility that small scale businesses can absolutely survive even in times when cost of production is increased and one of the things that totally determines their survival in times like this totally depends on how they react and respond . A small scale business organisation is supposed to react positively and considerably in times of increased cost of production, and the most positive way to act is to channel all available revenue and financial funds to the production of only goods and services which consumer advice are able and capable of becoming a necessity products . Small-scale business is she going to give out credit sales in times when cost of production is increased because that would so much liquidate the business . [/QUOTE]
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How should businesses react when cost of production increases.
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