04 Explain limitation of using the number of employees to compare business size.

[hassanalizafar]

[KN] Limited when comparing with capital intensive firm because it doesn’t reflect the level of technology or capital used.
[APP] For intance, a car manufacturer like Tesla uses advanced robots in production so it has fewer employees but still operates on a very large scale.
[AN] This means fewer workers don’t always equal a smaller business which leads automation increasing productivity which allows higher output with fewer staff which give them a lower cost of production and better avg cost per unit which gives misleading comparisons with labour intensive firms may undervalue the companys true size and lead to poor policy or investment decisions.
MODERATOR COMMENT:
KN:1/1
APP:1/1
AN:1/1

[Mustafa Khan]

kn]it cannot be compared with capital intensive business.
app]for example, a manufacturing based business cannot be compared with an agriculture based business. Because mainly machinery is used in manufacturing business and labor is used in agricultural business.
an]This means the 2 business cant be compared as 1 business might have more workers but generate less revenue as compared to the other and therefore can give inaccurate results which can mislead the investors, because of which they might experience financial loss and will eventually increase market volatility.
moderator comment:
KN:1/1
APP:1/1
AN:1/1

[Wahaj Ashraf]

[KN] The number of employees dosent give an actual picture especially when comparing different types of businesses
[AP] A company like Google may earn billions with fewer employees due to automation, while a factory may need many more workers to generate the same revenue.
[AN] Thus this shows that Businesses that use a lot of technology or automation may need fewer staff, yet still be very large in terms of output or revenue
MODERATOR COMMENT: This answer is copied exactly from muhmamad ali
KN:
APP:
AN:

[MuhammadAli91191]

[KN] The number of employees dosent give an actual picture especially when comparing different types of businesses
[AP] A company like Google may earn billions with fewer employees due to automation, while a factory may need many more workers to generate the same revenue.
[AN] Thus this shows that Businesses that use a lot of technology or automation may need fewer staff, yet still be very large in terms of output or revenue
MODERATOR COMMENT: The answer is exactly copied from wahaj

[Hajra]

K: Using the number of employees to compare business size can be limited because not all firms need the same amount of labour.
App: For example, a car factory using robots may have fewer workers than a hotel but still be much larger.
An: This makes comparisons unfair, doesn’t show how efficient or productive a business is, and ignores differences in technology or automation levels.
MODERATOR COMMENT:
KN:1/1
APP:1/1
AN:1/1

[abdurrehman waseem]

KN: Different industries have varying labour requirements.
App: For instance, a car manufacturer may need thousands of workers, while a software company with fewer employees might still earn higher revenue.
An: This means comparing businesses by employee numbers alone can be misleading because it ignores productivity and industry differences.
MODERATOR COMMENT:
KN:1/1
APP:1/1
AN:0/1

[Aayan Zaidi]

KN: The number of employees shows how many people work in a business, but it's not always a fair way to compare size.
APP: E.g a car factory may need many workers, while a software company might earn more money with fewer staff.
AN: So, it can be misleading because different industries need different number of employees.
MODERATOR COMMENT:
KN:0/1
APP:1/1
AN:0/1

[Shaliza khawaja]

KN number of employees is not a accurate factor to measure a busienss size as a large business might be capital intensive and hence have less employees for example a clothing business have a large company but ony a few employees, if we relay on number of emloyee then we will ignore the productivity and revenue of the business, giving an unfair result furthermore number of employee also over look the market influence which is a major factor in measuring number of employees

[AliAzeem]

[KN]It will be hard to compare business size if the business is capital intensive.
[APP]For example a factory may employ more capital intensive machinery than a labour intensive accounting firm.
[AN]If number of employees is used to measure business size,it might lead to an inaccurate result and will give labour intensive firms an advantage over capital intensive firms which might lead to mismanagement.
MODERATOR COMMENT:
KN:1/1
APP:1/1
AN:0/1