What is a common problem faced by larger businesses?

Larger businesses often experience diseconomies of scale as they grow. This situation occurs when the cost per unit increases as the scale of operation expands. While larger firms might initially benefit from economies of scale, where increased production leads to lower costs and higher efficiency, there comes a point when managing a bigger organization can lead to inefficiencies.

As a business grows, communication within the organization can become more complex, leading to misunderstandings or delays. Coordination between departments can suffer, reducing overall productivity. Additionally, larger firms may become more bureaucratic, which can slow decision-making processes. These factors contribute to rising costs, ultimately negating the advantages gained from prior economies of scale.

In contrast, the other options describe benefits or characteristics that larger businesses might enjoy rather than problems they face. Therefore, the focus on diseconomies of scale highlights a significant challenge for larger businesses in their operational management.