Ways of measuring the size of business:
How can you measure the size of a business?
-Volume (units of sales)
-How many employees it has
-Value of it's shares in stock markets
-Number of countries it operates in
Economies of scale
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