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This enables them to coexist with large enterprises that build their competitive advantages mainly on economies of scale, economies of scope or on the learning curve. Medium companies usually finance their operations with funds provided by the family and by using internally generated funds. Due to information asymmetry problems between owners/managers and potential external debt or equity investors, internal resources are preferred over external and debt over equity financing.
Important characteristic of these companies is that their ownership, managerial and leadership functions are usually embodied in one person...
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