Size of Business

Question 1

Revenue

Answer 1

The total value of sales made by a business in a given period of time. Formula: Selling Price x Quantity

Question 2

Capital Employed

Answer 2

The total value of all long - term finance invested in the business.

Question 3

Market Capitalisation

Answer 3

The total Value of a company’s issued shares. Formula: Current Share Price x Total Number of Shares Issued

Question 4

Market Share

Answer 4

Sales of the business as a proportion of total market sales Formula: (Total Sales of Business x 100)/
Total Sales of Industry

Question 5

Internal Growth

Answer 5

Expansion of a business by means of opening new branches, shops or factories (also known as organic growth).
Example: A retailing business opening more shops in towns and cities where it had previously had none such as Starbucks