Enterprise,business growth and size

Question 1

Explain how do we measure business size?

Answer 1

(i)Number of people employed
(ii)Value of output
(iii)Value of sales

Question 2

Explain who would find it useful to compare the size of business?

Answer 2

(i)Investor/shareholders
(ii)Government
(iii)Competitor

Question 3

Explain why the owner of a business may want to expand the business?

Answer 3

Business have different objectives
These objectives are influence by owner’s vision and goals.
Some owners might be happy and statisfied with their small business whereas there are owners who want their business to grow.

Question 4

Benefits of business growth

Answer 4

(i)More profit
(ii)More stability
(iii)Higher market share

Question 5

Explain why does the owner of a business may not want to expand the business?

Answer 5

(i)Less risk
(ii)Lower cost
(iii)Quicker results