Different measures of business size
- Created by: ying.t
- Created on: 23-10-20 02:58
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- Measuring business size
- Number of employees
- Potential difficulty: The company may be more capital intensive, rather than labour intensive
- Revenue
- Potential difficulty: one business may operate in a niche market and sell only a few items but at a high price
- Revenue: total value of sales made by a business in a given period
- Capital employed
- Potential difficulty: a larger company may decide to not invest much in one year
- Untitled
- Market share
- Potential difficulty: a smaller company operating in a small market may have a larger percentage of the market share than bigger company in a larger market
- Market share: sales of the business as a proportion of total market sales
- Market capitalisation
- Market capitalisation: the total value of a company's issued shares
- Number of employees
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