Final answer:
Targeting a larger customer base usually equates to greater profits for businesses, as they can sell more of their products, often at lower prices, which stimulates demand. Reinvestment of profits into expanding production capacity can further bolster growth and employment. Nonetheless, intense competition can have adverse effects, such as reducing profits and causing job losses.
Step-by-step explanation:
The statement that the opportunity to target a larger customer base means greater profit is generally true. Firms aim to increase their customer base due to the potential of higher profit margins. This is seen in competitive markets where businesses are incited by profits to expand facilities or invest in new ones.
The result of such expansion is typically a larger variety of goods at lower prices for consumers, which in turn can lead to higher sales volumes for the business. However, it should also be noted that competition from those with better or cheaper products can negatively impact profits and, in some cases, lead to business closures or job losses.
Universal Generalizations suggest that businesses grow by reinvesting profits into new plants, equipment, and people, and although business mergers have varying impacts, profits play a central role in encouraging firms to grow and provide more opportunities. Moreover, multinationals can introduce significant opportunities in foreign nations.