Types of measuring a business - Coggle Diagram
Types of measuring a business
Is the money invested
Benefits: By the invested you can see the worth of the business
Drawback: Difficult to value assets accurate
Number of outlets
Are the shops a business run
Benefits: Gives them an idea and helps to compare them with other businesses
Drawback: Outlets can have less costumers but many locations, it don’t show the amount of products they sold. Also doesnt show how many outlets a business own.
Number of employees
Benefits: Shows the scale of how is it operating.
Drawback: Can’t compare businesses and also it can have so many people but little worth, some with few people and a lot of worth.
Value of output
Is the value of products sold
Benefits: Shows how much theyre producing and is easy to compare with others.
Drawback: Doesn’t take the costs of the business and also it depends on their economy in that time.
Is the amount of sells a business have.
Benefits: Provides the comparision and shows the money they are receiving by how money they invested in the business.
Drawback: If it has a large share, it doesn’t mean its a large method, the method don’t share if it has a staff, logos and patens.
Value of the business
Is the money they pay to win
Benefits: Is a good reflection because many businesses bought them by their potential.
Drawback: The measure can’t work because sometimes they pay more than its worth.