3. Comparing the size of businesses
•Businesses vary in size, and there are
some ways to measure them. Who would
want it to know about size of the
business:
Investors – to see their investment is safe
or not
Government – to collect tax revenue
Competitors – level of competition
Workers – security of job
Banks – recovery of the loan
4. Ways of measuring the size of a
business
Businesses can be measured on the basis of:
Number of
employees
Value of
output
Value
of sales
Capital
employed
