09 Outline why a single measure of size is often not enough to compare two businesses.

[Abdullah Altaf]

[KN] A single measure size is not enough because the two business might use different production methods and have different products.
[APP] For example, a fast-food chain might have many outlets and high sales but employ mostly part-time staff, while a software company might have fewer employees but high profits due to specialized skills and automation.
[AN]Thus by using one measure would give inaccurate results which will lead to misleading comparisons and poor decisions impacting business growth.
MODERATOR COMMENT:
KN:1/1
APP:1/1
AN:0/1

[Muaz Aamir]

KN A single measure of size means using just one thing, like sales or number of workers, to compare businesses.

AP For example, one company might earn more money, while another owns more buildings or equipment.

AN Using only one measure can be misleading because it doesn’t show the full picture. a business could have high sales but low profits, another might have fewer sales but bigger assets, so it’s better to use a mix of measures to compare them acxurately.
MODERATOR COMMENT:
KN:1/1
APP:1/1
AN:0/1

[Shaliza khawaja]

a single measure size is often not enough as it only shows one aspect of the business
for example if we use capital employeed, one company might have high capital employeed but have smaller revenue where as a labour intensive business could have double there revenue.
this could make comparison biased as different industries have different strengths of business for example sales, using onlyone measure could also cause the investor to invest in a financially unstable business.
MODERATOR COMMENT:
KN:1/1
APP:1/1
KN:0/1

[Shuraim Arif]

(KN) Each method has its own limitations and are not enough to compare 2 businesses.
(APP) For example, using the value of sales to figure out the size and compare 2 businesses like Ferrari and Toyota. The value of sales would show that Toyota is a bigger business than Ferrari due to their higher sales.
(AN) This shows that using the value of sales method to compare them both would give highly inaccurate answers and would show Toyota as a larger business as compared to Ferrari, which is wrong. Similarly using only one of the other methods would also give inaccurate results, creating a false image of the businesses and eventually leading to huge loss for people like investors who would rely on a single measure to compare business sizes.
MODERATOR COMMENT:
KN:1/1
APP:1/1
AN:1/1

[M huzaifa jillani]

(KN)
A single measures of size like numbers of employees or sales only shows one part of how big a business is.
(APP)
For example a car company may have fewer workers but high sales because it uses machines while a restaurant chain may have many workers but lower sales.
(AN)
This means using just one measure can give a misleading comparison so several measures should be used to get a more accurate idea of which business is truly larger.
MODERATOR COMMENT:
KN:1/1
APP:1/1
AN:0/1

[Mamoona Hussain]

KN: All methods have limitations and each one shows different results.
APP: For instance, using the capital intensive measure can make a car manufacturer look bigger whereas the labour intensive measure can make it look smaller and a restaurant look larger. Value of Sales can make Nike look more successful whereas value of output can make a local brand appear more successful.
AN: So more than one method is encouraged to be used so that the stakeholders of the business can have a clearer view of the business size and make better decisions about making investments, enabling the business which is actually larger to raise more finance and then use it to improve the quality of their goods or services, improving brand image, attracting customers, ensuring sales, revenue, profits, and the long term survival of the business.
MODERATOR COMMENT:
KN:1/1
APP:1/1
AN:1/1

[AliAzeem]

[KN]All measures have limitations and using only one measure might give an inaccurate analysis of business size.
[APP]For example if only capital employed is used to measure business size,it might make the capital intensive business look bigger than the labour intensive business.
[AN] Therefore using only one measure of size can be misleading as a business should be judged on all aspects to identify it's true size and give an accurate result.
MODERATOR COMMENT:
KN:1/1
APP:1/1
AN:0/1

[Dania Farooq]

[KN] A single measure of size is often not enough to compare two businesses because each method only shows one side of how big a business is.
[APP] For eg, a company might have high sales but very few employees while another has many workers but lower sales. Depending on what method is used, one business may seem larger than the other one
[AN] Suxch as diff ways show market success, employees show labour size nd capital shows investment so using more than one measure gives a clearer comparison between businesses.
MODERATOR COMMENT:
KN:1/1
APP:1/1
AN:0/1

[hassanalizafar]

[KN]Every method of comparing two businesses has its own drawbacks which can affect how accurately the real size of a business is shown.
[APP]For instance, an airline may appear small if measured by employee numbers but large if measured by the value of its aircraft and total capital.
[AN]This can lead to misleading comparisons while the companys actual scale might be misunderstood by investors and lenders who may make wrong decisions strategies which might not match the firms real capacity by this it increases the financial risk and lowers confidence in business evaluation.
MODERATOR COMMENT:
KN:1/1
APP:1/1
AN:0/1

[sarah_naeem]

[KN]: A single measure of size is often not enough to compare two businesses as all methods have limitations.
[APP]: For example, using value of output would make a business like a furniture shop look bigger as they are producing items in hundreds but value of sale would make the same business look smaller as their products are remaining in stores and not being purchased enough by people leaving them to gain less or no profit.
[AN]: Thus, a single measure of size may be misleading and so more than one method is encouraged which can reduce errors and can help investors make the right decision leading to increase in profit margin.
MODERATOR COMMENT:
KN:1/1
APP:1/1
AN:0/1

[Areeba Arshad]

[KN] Business size can be measured in different ways, such as by sales revenue, number of employees, or capital employed.
[APP] For instance, a highly automated factory may seem small based on employee numbers but large when measured by capital invested.
[AN] This shows that each method highlights a different aspect of size, relying on only one can give a misleading picture so using several measures together provides a fairer and more accurate comparison.

[Tuqwa]

kn:different methods such as number of employees capital employed or sales value can be used to measure business size.
app:each method has its own limitations forexample a business may appear large when measured by sales value but small when measured by number of employees if it is highly automated.This makes relying on one measure misleading.
an:Therefore using several measures together gives a more accurate comparison as each method highlights a different aspect of the business scale and performance.

[Subhan Zafar]

{KN}A single measure of size, such as number of employees or value of sales, only shows one aspect of a business and may not give a full picture of how large it really is.
{APP}For example, Microsoft has fewer employees than a car manufacturer like Toyota, but its sales revenue and market value are much higher. This shows that one measure alone can be misleading.
{AN}This means it’s better to use several measures together such as sales value, market share, and capital employed to get a more accurate and fair comparison between different types of businesses or industries.