02 Explain how 'value of sales' can be used to measure business size.

[Sir Afzal Shad]

02 Explain how 'value of sales' can be used to measure business size. [3]
Hint: See Notes with sample answer. Develop in your own wordings.

[M huzaifa jillani]

(KN)
The value of sales measures the total revenue a business earn from selling its products or services over a period of time.
(APP)
For example Unilever Pakistan sells a wide range of products like Surf Excel and Lux soap earning billions of rupees in sales each year much higher than a small local detergent company.
(AN)
This means a business with higher sales value is considered larger because it serves more customers and has a bigger market share. However, it may not always shows true size if the business sells expensive products but in small quantities.

[Abdur Rehman khan]

[KN] The value of sales measures the total revenue a business earns so a higher sales value indicates a larger business.
[APP] For example, Apple can generate billions in sales worldwide compared to a small local electronics shop that sells only a few items each day.
[AN] This means a business with higher sales will have more customers hence becoming more well-known in the market gaining more market share and have a good financial power to grow further.

[Naveen fatima]

[KN] The value of sales can be used to measure the size of a business because it shows how much revenue the business earns.
[APP] For example, a small shop might earn $100,000 a year, while a large company could earn millions.
[AN] A higher sales value means the business is larger, has more customers, sells more products, and holds a bigger share of the market.

[Fatima ibtehaj]

[KN]A business with higher sales value is usually considered larger, as it shows a greater level of production and demand for its products.
[APP]For example, a supermarket chain like Carrefour earns millions of dollars in sales each year, while a small corner shop might only earn a few thousand.
[AN]Hence sales value can be a good indication as it can help a business to reduce economies of scale accordingly and help to manage cashflows effectively and also meet customer demands.

[Aarib Saad]

(KN)Value of sales can be used as it can indicate how much demand a business has for it's products.
(APP)For instance, Aquafina has high value of sales which tells us that it has high demand due to selling a necessity.
(AN)Thus, allowing it to attract customers from all classes of the society as it sells a necessity, so more sales due to more customers, which in turn can allow the business to reinvest into the business for expansion like through advertising.

[Abdullah Baig]

[KN] The value of sales measures how much revenue a business earns from selling its goods or services
[APP] For example, a large company like Nestle earns billions in sales every year .This shows it sells on a massive scale unlike a small bakery that only sells locally and earns far less meaning the higher the sales value, the larger the business
[AN] Therefore, value of sales is a good indicator of business size as it reflects how much demand and market presence a business has

[Abdullah Altaf]

[KN] Value of sales is a measure of total sales revenue, calculated by multiplying the total number of sales by the average sale price during a specific period.
[APP]For instance, a large retail chain like Walmart generates billions of dollars in sales annually, whereas a small, independent bookstore might only generate hundreds of thousands. This difference in sales value reflects their respective sizes and market reach.
[AN] Therefore, value of sales is a useful indicator of business size, suggesting a larger operation, wider customer base, and greater market presence.

[Arham Qadri]

[KN] Because it shows how much revenue the business has earned.
[APP] For example revenue for Alibaba group remained 134 billion while revenue for Target was 106 billion.
[AN] Higher sales indicates that the brand is very big, higher sales allow businesses to benefit from economies of scale and fulfill demands of customer.

[shamaim shakeel]

One way to measure the size of a business is by looking at the value of its sales the total money it earns from selling its products or services. (Knowledge)
For example, Hivision Cameras might have very high sales revenue from selling thousands of cameras each year, showing it operates on a large scale. (Application)
A higher value of sales means the business attracts more customers and has a bigger share of the market, which reflects its financial strength and overall size. (Analysis)

[Haiderabbas]

KN: Value of sales measures business size by showing how much money the firm earns from selling goods & services ie. higher sales usually mean a bigger market presence.
APP for e.g. Apple might record annual sales of 500 million USD, while a local village shop makes 200000 USD a year.
AN: The retailer’s 500m sales show it has wide market reach and serves many customers. This large revenue gives it cash to open more stores, buy stock in bulk and spend on marketing.

[Uqbah hadeed kayani]

[kn] The value of sales measures business size by showing how much revenue a firm generates over time.
[app] For example, Apple earns billions in annual sales, while a small tech shop earns far less.
[an] Higher sales value reflects stronger market demand, larger customer reach, and greater business influence in the industry.

[Areeba Arshad]

[KN] The value of sales measures the total revenue a business earns from selling it's goods or services over a specific period.
[APP] For example, a small bakery might earn Rs. 500,000 per year, while a large food company could earn millions in sales revenue.
[AN] A business with higher sales value usually serves more customers or sells in larger volumes. This indicates that the firm has a larger market share and greater production capacity. Therefore, it can be classified as a larger business, whereas firms with lower sales values are considered smaller.

[Abdullah Mohsin]

[KN] The higher the value of sales, the higher the revenue.
[APP] For example, a small bakery with one branch would earn RS. 50,000 per month while a large scale national business would earn more than RS 500,000 per month.
[AN] This shows that a business with higher revenue sells more products per month, indicating large production scale, helping identify the size of the business.

[Shuraim Arif]

(KN) Businesses with larger value of sales are usually bigger than those that have a smaller value of sales.
(APP) For example, a large multinational company that sells chocolates may earn millions from their sales due to their brand image and quality, whereas a small scale shop may only earn a few thousand as it sells local chocolates that don't tend to attract customers as much.
(AN) This shows that since large businesses have a higher value of sales, they would also have a bigger production scale, unlike a small business that wouldn't, partially due to the less amount of revenue they earned that lead to less amount being reinvested into the business.