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

Ch 3 Size of business
Abdullah Altaf
Corporate Commander
Posts: 61
Joined: Thu Aug 29, 2024 7:35 pm

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

Post by 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.
Muaz Aamir
Corporate Commander
Posts: 56
Joined: Mon Sep 15, 2025 6:20 pm

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

Post by 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.
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