methods of measuring business size Flashcards
market share
the market share is the percentage of an industry/market’s total sales that are earned by a company over a specified period of time
market share= total sales of business/ total sales of industry
number of employees
this is the number of employees that work in a company. Normally, when a business has a large number of employees working for them, they are labelled as a large business but nowadays, technology is taking over which means that most businesses are capital intensive and have a few employees (workers) working for them.
sales turnover
the amount of money a business earns from the sales of a product. This comparison can only be made by businesses that operate in the same industry.
capital employed
the amount of money invested in a company. the larger the amount of money invested, the larger the business. however, this comparison can only take place between businesses in the same industry.
