Revision for A-level Business studies 1.3
Different methods of measuring the size of a business
Number of employees working
Market share
Sales revenue
Capital invested
Small business
Advantages of being small business
Complete control
No legal requirements
Good owner-customer relationship
Disadvantages of being small business
Limited capital
Unlimited liability
Strengths of family business
Strong commitment
Family members may work for lower salaries
Family members are able to solve each other’s problems
Weaknesses of family business
Business suffers if the family members fight
Confused roles
Small businesses
Small businesses provide goods and service which a large business may not provide
Small businesses may cater to customers’ specific demands
Small businesses provide employment
Why business might grow
The business might grow
To earn more profit
To have a higher status
How business might grow
The business might grow in two ways
Internal growth
- Offer more products
- Locating in other places
External growth
- By buying another business
- By joining with another business
