Commonly,the size of a business is measured by the number of employees hired, value of output, value of sales and value of capital used for production. A growing business always experiences a major changes in all these sectors. Once a business is growing, it employees less, and spends more on machinery. However, number of employees hired cannot determine a business’s size accurately. Yet, the output produced is a better way to measure. A business has more sales in case of growth, and it is a major of measuring a business. The most important and major way to measure a business is by measuring the value of of capital employed. A growing business has more investment than a smaller one, hence it is the best way to measure a business.
