Measuring business size, internal and external growth, mergers and takeovers, economies and diseconomies of scale, and why some firms stay small.
Measuring the size of a business
There is no single best measure; common ones are number of employees, revenue (sales turnover), capital employed, market share and market capitalisation (for a plc). Each has limitations — a capital-intensive firm may employ few people yet have huge revenue, so several measures are used together.
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