GCSE BUSINESS STUFF

Ways of measuring the size of business:

How can you measure the size of a business?

-Volume (units of sales)

-Value (revenue/turnover)

-How many employees it has

-Value of it's shares in stock markets

-Market share

-Number of countries it operates in

Economies of scale:

What types is there of economies of scale?

Managerials- the firm is able to specialise

Technical- ability to become capital intensive

Financial- ability to obtain large amounts of finance easily with better rates

Risk Bearing- able to spread the risk of operating