Number of employees
* The number of employees is an easy way of measuring the size of a business. It can be difficult to compare businesses in different markets using this measure.
* A retail business may employ more people than a car manufacturer, but this does not mean the retailer is larger. This is because the car manufacturer uses a large amount of machinery; therefore it does not need as many workers.
* The Number of employees is a good way for measuring business but however it is hard to be used for measuring businesses in other industries
* The value of a business measure the value of the business if it were to be sold off
* The value of capital employed calculates the value of everything the business own, in other words How much it cost to replace all the businesses assets
* The 1985 Companies Act says: "a firm with turnover less than £1.4 million is small. If turnover lies between £1.4 million and £5.75 million then the firm is medium size. If turnover is over £5.75 million it is large".
* The value of capital employed calculates the value of everything the business owns, in other words, how much it would cost to replace all of the businesses assets.
* The value of the business measures the value of the business if it were to be sold. This value can vary enormously depending upon if there is another business wanting to buy it.
* This is measure by percentages, obviously the larger the percentages of market share the larger the business.
* However this measurement can only be useful for measuring businesses in the same industry
* One business with 50% market share may be much larger or smaller than another business with the same market share if it is in a different sized market.