3 & 4 Flashcards
1
Q
Problems with measuring business size
A
- Often give different comparative results
- No internationally agreed definition of a small, medium & large business.
2
Q
Measure of business size, number of employees
A
Simplest measure
Easy to understand
3
Q
Problem with number of employees when measuring business size
A
Some businesses only need to employ a few people even though they invested in a lot of capital.
4
Q
Different measures of a business size
A
- Revenue(sales turnover)
- Number of employees
- Capital employed
- Market capitalisation
- Market shares
5
Q
Revenue(sales turnover)
A
Total value of sales made during trading period = selling price quantity sold
6
Q
Capital employed
A
Total value of all long term finance invested in business.
7
Q
Market capitalisation
A
Total value of a company’s issued shared.
8
Q
Market share
A
Sales of the business as a proportion of total market sales.
