10 Analyse the reasons, why value of output can’t be a good approach to measure business size. [6]

[Abbas17]

(KN) Variability in Pricing and Costs
(AN) Different price points means that a business with a high-value output may not necessarily have a large physical presence or workforce.
(AN+) Some businesses may excel in producing high-value, specialized products with a relatively small team, thanks to technological advancements and process efficiencies.

(KN) Customization and Niche Markets
(AN) Businesses that specialize in customized or niche products or services may have a high value of output despite serving a smaller customer base.
(AN+) A business may have a high value of output, but a significant portion of this value may go to suppliers or intermediaries

[Syed Mustafa Ali]

KN: Economies of Scale
AN: Larger businesses often benefit from economies of scale, which means their cost per unit is lower
AN+: They can produce more for less, leading to higher revenue.
KN: Seasonality
AN: Many businesses experience seasonal fluctuations in revenue, which can make comparisons difficult
AN+: They might look much larger in a high season and much smaller in a low season.

PERFECT ANSWER NO ROOM FOR IMPROVEMENT. STUDENTS LEARN FROM THIS

[Syed Mustafa Ali]

[KN] the amount of profit
[AN] some of the firms would be still producing in high quantity but operating on breakeven and not able to expand
[AN+] the size of the business is directly related to the profit made by the business

[KN] seasonally
[AN] some firms would be only working in some times of the year
[AN+] during that time they would be producing high value of output but that does not defines it's size

PERFECTION AT ITS PEAK

[Syed Mustafa Ali]

[KN] Variability in Pricing and Costs
[AN] Different price points means that a business with a high-value output may not necessarily have a large physical presence or workforce.
[AN+] Some businesses may excel in producing high-value, specialized products with a relatively small team, thanks to technological advancements and process efficiencies.

[KN] Customization and Niche Markets
[AN] Businesses that specialize in customized or niche products or services may have a high value of output despite serving a smaller customer base.
[AN+] A business may have a high value of output, but a significant portion of this value may go to suppliers or intermediaries

COPIED from SALMAN Khurram some Dignity please

[Syed Mustafa Ali]

(KN) Variability in Pricing and Costs
(AN) Different price points means that a business with a high-value output may not necessarily have a large physical presence or workforce.
(AN+) Some businesses may excel in producing high-value, specialized products with a relatively small team, thanks to technological advancements and process efficiencies.

(KN) Customization and Niche Markets
(AN) Businesses that specialize in customized or niche products or services may have a high value of output despite serving a smaller customer base.
(AN+) A business may have a high value of output, but a significant portion of this value may go to suppliers or intermediaries

ABBAS FEAR GOD what are you doing COPIED from KHURRAM who COPIED it from SALMAN.

[Huma Junaid]

[KN]The value of output is highly dependent on pricing, which can vary
[AN]Two businesses with similar revenue may have quite different pricing strategies and production costs
[AN+] which may lead to inadequate measurement of the business size

[KN]Seasonality
[AN] different companies may have different output productions in different seasons
[AN+] hence it may be a bad idea to measure a business size with output