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


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