MGIS 317 Chapter Notes - Chapter 3: Sole Proprietorship, Exact Sciences, Multinational Corporation
Document Summary
Businesses vary in size, from a sole trader with only one employee to a multinational corporation with thousand of them. Measuring the size of businesses is a rather inexact science, but effort is still made so that comparisons can be made between them. Investors in a firm may wish to compare the size of the business with close competitors- particularly in order to compare the rate of growth. If the business is larger it usually means the business is established reducing the risk of failure. Because investors benefit from business success the bigger the business the greater the money they will receive: customers: May prefer to deal with large firms as they are more stable and less likely to cease production or fail. Different measures of size: number of employees: this is the simplest way of measuring the size of a business.