Comparing Growth

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  • Created by: Kathryn
  • Created on: 09-06-14 13:31
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  • How to compare the size of a business
    • Number of employees
      • some firms use production methods which employ very few people but still produce high output levels.
    • Value of output
      • high level of output does not mean the business is large
    • Value of Sales
      • could be misleading to use this to measure size of businesses that sell very different product
    • Value of Capital Employed
      • similar problem to 'number of employees' - a company employing many workers may use labour-intensive methods of production. These give low output levels and use little capital equipment

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