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Size of Firms Measured in: (Organisation(internal) (Often large firm =…
Size of Firms Measured in:
Number of Employees
<50 employees = small
However depends if firm is
labour intensive
capital intensive(uses CAM and machinery to automate their production processes for output mass production.
Organisation(internal)
Often large firm =
More department function specilisation
More management layers
More offices,factories +/retail outlets
different location / country(multinational)
Often small firm
Employees and owners carry out function
Capital Employed
= money invested in productive assets in firm for more revenue generation.
Assets for production of selling goods/sevices
Examples
Machinery
Factory
Office buildings
Stocks of material + components
wage money + other costs
the more capital employed the greater scale of production
Depends if labour or capital intensive
Market Share
Market consists of consumers willing to buy good/service no matter location
Measurement :total amount spent per consumer on product per week/month/year