[KN] The amount of money a business earns from its sales helps show how large or successful it is compared to others in the market.
[APP] For eg, nestle generates massive sales bcs its food and beverage products are sold nd trusted in many countries around the world.
[AN] This brand image increases its overall income and profit nd strengthens customer loyalty, attracts new investors nd gives the company resources to develop new products nd expand into new markets.
02 Explain how 'value of sales' can be used to measure business size.
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Dania Farooq
- Wealth Wizard
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Amina Rizwan
- Wealth Wizard
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Re: 02 Explain how 'value of sales' can be used to measure business size.
[KN] Value of sales can be used to measure the size of the business as it helps show how much revenue a business is earning
[APP] For instance a smartphone company like Nokia may earn less income as compared to a larger smartphone industry like Apple or Samsung
[AN]Therefore this shows that higher value of sales indicates that the business sells more products and it has higher market share which leads to higher profits for the business.
[APP] For instance a smartphone company like Nokia may earn less income as compared to a larger smartphone industry like Apple or Samsung
[AN]Therefore this shows that higher value of sales indicates that the business sells more products and it has higher market share which leads to higher profits for the business.
Re: 02 Explain how 'value of sales' can be used to measure business size.
KN:A want is something people would like to have for comfort or status while a need is something essential for living
APP:For example a consumer may want branded trainers like Nike for their style image or popularity but they only need a basic pair of shoes to protect their feet and move around comfortably.
AN:This shows that wants are driven by personal preferences and social status while needs are based on necessity and survival.
APP:For example a consumer may want branded trainers like Nike for their style image or popularity but they only need a basic pair of shoes to protect their feet and move around comfortably.
AN:This shows that wants are driven by personal preferences and social status while needs are based on necessity and survival.
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Subhan Zafar
- Corporate Commander
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Re: 02 Explain how 'value of sales' can be used to measure business size.
{KN}The value of sales measures how much revenue a business earns from selling its products or services.
{APP}For example, Apple has a very high value of sales from products like the iPhone and MacBook, showing it operates on a large global scale. In contrast, a small local retailer with lower sales revenue would be considered a smaller business.
{AN}However, sales value alone may not fully reflect business size, as some firms have high sales but low profits. Therefore, it should be used alongside other measures such as number of employees or assets to give a more accurate picture.
{APP}For example, Apple has a very high value of sales from products like the iPhone and MacBook, showing it operates on a large global scale. In contrast, a small local retailer with lower sales revenue would be considered a smaller business.
{AN}However, sales value alone may not fully reflect business size, as some firms have high sales but low profits. Therefore, it should be used alongside other measures such as number of employees or assets to give a more accurate picture.