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

[Sir Afzal Shad]

09 Outline why a single measure of size is often not enough to compare two businesses. [3]
Hint: All methods have limitations > One method can make a business look large, another can make it look small.

[Fatima ibtehaj]

[KN]A single measure of business size is often not enough because different businesses operate in different industries and use different resources.
[APP]A small tech company may have few employees (low labour size) but very high sales and profits, while a large manufacturing company may employ many workers but have lower sales per worker.
[AN]It is better to use multiple measures together as doing so gives a more complete picture of the business’s scale, efficiency, and financial strength.

[Abdullah Baig]

Kn
A single measure of size is often not enough because each method shows only one aspect of a business and can give a misleading comparison
App
For example, a company may have a high value of sales but employ very few workers due to automation while another business may have many employees but lower sales making each appear larger or smaller depending on the measure used
An
Therefore, using several measures together like employees, capital employed and sales gives a more accurate picture of a business’s true size and operations

[Aarib Saad]

(KN)Different methods will have different results for the same business.
(APP)For instance, a farm might look small when using Capital employed to measure business size, but since most farms are labor intensive, it will appear as large when using amount of employees as the measure.
(AN)Thus, using multiple measures can prove beneficial and provide more accurate of a result, thus allowing businesses to better analyze their competitors, so better decision making like pricing decisions, which will help business to boost market share.

[Hajra]

K: A single measure of size is not enough because it only shows one side of the business.
App: For example, one company may have higher sales but fewer employees compared to another.
An: This gives an incomplete picture, can lead to wrong comparisons, and may hide the true strength or weakness of a business.

[shamaim shakeel]

[KN] A single measure of size, like sales, profit, or number of employees, only shows one side of a business and may give an incomplete picture.
[APP] For example, a company like Nike may have higher sales than a smaller luxury brand like Rolex, but Rolex earns more profit per product.
[AN] This shows that using only one measure can be misleading because different businesses operate in different ways using several measures together gives a fairer and more accurate comparison.

[EmmanWaseem]

Different methods have their own flaws and limitations
For example the business maybe large but there less number of employees
There are different factors that can make the business small or large not a specific but combined for the size of measurement

[Uqbah hadeed kayani]

[kn] A single measure of size isn’t enough because businesses differ in structure, industry, and operations.
[app] For example, a software firm with few employees may earn more than a factory with hundreds.
[an] Using one measure can give a false comparison, as it ignores factors like capital, revenue, and market reach that together show true business size.

[Arham Qadri]

[KN] Because one measure only shows one dimension, but a business may differ in number of employees etc.
[APP] for example, A capital-intensive business may look bigger in assets than a service firm even if it is more profitable.
[AN] Hence using one measure can give a false statement as it ignores other factors, different business operates in different way.

[Abdullah Mohsin]

[KN] As all methods have limitations, giving inaccurate comparisons.
[APP] For example, using capital employed to compare business sizes makes the capital intensive business look larger as compared to a labour intensive business even if the labour intensive busienss is larger in size.
[AN] Therefore, using only one method to measure the size of a business leads to inaccurate answers as it would ignore other factors e.g number of employees, value of sales etc.

[Naveen fatima]

[KN]There are different ways to measure how big a business is and each focuses on a different aspect of the firm.
[APP]For example, one company might have many employees, while another might make higher sales.
[AN] A single measure is not enough because it only shows part of the picture. One business could have more workers but earn less money or use more capital but sell fewer products. Looking at several measures together gives a more accurate comparison of business size.

[Abdur Rehman khan]

[KN] Each method of measuring business size focuses on a different aspect and each method has its own limitations so none gives the full picture alone.
[APP] For example, a firm with few employees but expensive machinery may seem small by staff numbers but large by capital employed.
[AN] This means relying on only one measure can give a misleading impression making comparisons between firms inaccurate and possibly leading to poor decisions and mislead investors, lenders, or policymakers.

[Mustafa Khan]

kn] A single measure, such as market capitalisation, provides only one side of a business's overall scale and operational structure.
app]For example, a capital-intensive manufacturing firm might have high capital employed but relatively low revenue, whereas a service firm could have high employee numbers but low asset value, making direct comparison misleading.
an]Therefore, a effective comparison requires considering multiple measures of size, including sales, number of employees, capital employed, and market share

[abdurrehman waseem]

KN:This is because different measures reflect different aspects of business activity.
App:For example,A bank may have high capital employed but fewer employees than a retailer.
An: Using only one measure can give an incomplete or inaccurate picture; combining measures like sales, assets, and employees gives a fairer comparison.

[Aayan Zaidi]

KN: One measure of size doesn't show the full picture of a business because each measure focuses on different things.
APP: E.g one company may have more employees, while another earns higher sales.
AN: So, using special measures together gives a fairer and more accurate comparison.