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

[Dania Farooq]

[KN] Using the number of employees to measure business size can be misleading because it doesn’t show how much money or machinery a company uses.
[APP] For example, an automated car factory might have very few workers but still be a huge nd valuable business.
[AN] This means judging business size only by employee numbers can give a wrong idea as some big firms rely more on machines nd technology than people. It can make advanced companies look small nd ignore their high profits as well as lead to unfair comparisons with labour intensive businesses.

[Areeba Arshad]

[KN] The number of employees is a common way to measure business size, but it doesn’t always show the true scale of operations.
[APP] For example, a highly automated car factory may have very few workers but still produce thousands of vehicles each month.
[AN] This means employee numbers can make capital-intensive firms seem small, ignore the value of their expensive machinery and technology and give an inaccurate comparison with labour-intensive businesses that rely more on people than machines.

[Amina Rizwan]

[KN] A limitation of using number of employees to compare business size is that not all business require labour inorder to run there business efficiently
[APP] For example a car factory may use more machinery as compared to a hairdresser which requires more physical human labour due to it being a service sector business
[AN] Hence this makes it difficult to compare as the sector of industry varies from business to business and it can not measure the business effectively leading to misguided information.

[Mahnoor satti]

[KN] Using the number of employees to compare business size can be misleading.
[APP] For instance big company like Nike earn in billions with few workers while a factory needs more emplyees to get the same output.
[AN] Thus this show that the comparisons is unfair and it also ignores the productive of each worker.

[Tuqwa]

kn:Using the number of employees to measure business size can sometimes give misleading results.
app:forexample a capital intensive business such as an automated car factory may have very few employees because most of the work is done by machines yet it is still a large and valuable business. Meanwhile a small retail store may have more workers but a much smaller output and value.
an:this means that judging business size by employee numbers can give a false impression particularly for firms that depend more on advanced equipment than on human labour.

[Subhan Zafar]

{KN}The number of employees shows how many people work in a business and is often used to measure business size.
{APP}For example, a car manufacturer like Toyota employs thousands of workers, while a software company like Microsoft has fewer employees but much higher revenue.
{AN}This means the number of employees can be misleading because some large businesses rely more on technology and automation rather than labour, so employee numbers don’t always reflect the true size or output of a business.