Chapter 3: Size Of A Business

Question 1

Define capital employed

Answer 1

Capital employed: the total value of all long-term finance invested in the business.

Question 2

Define market capitalization

Answer 2

Market capitalisation: the total value of a company’s issued shares.

Question 3

Define revenue

Answer 3

Revenue: total value of sales made by a business in a given time period.

Question 4

Define market share

Answer 4

Market share: sales of the business as a proportion of total market sales.

Question 5

Define internal growth

Answer 5

Internal growth: expansion of a business by means of opening new branches, shops or factories (also known as organic growth).