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Explain 5 factors that affect the size of firm
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Asked 2/3/2013 11:40:40 AM
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User: Explain 5 factors that affect the size of firm

Weegy: What Are The Environmental Factors That Affect Business? ... Explain Six Factors That Would Affect The ... [ Can You Describe The Factors Which Influence The Size Of ... ]


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paral|Points 3496|

User: I want 2 ask u an economics question that i dont understand can i ask u

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User: Discuss 5 factors that affect the size of a firm

Weegy: Any three of what.
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User: I dnt get u





Weegy: 1. Capital Investment Factor The capital employed by shareholders in form of share capital, reserves and surplus (net worth) determines the size of business. [ It is mainly used to compare two firms or more that are producing similar or differentiated products. 2. Number of Employees The number of employees employed by any business determines its size. This is done by comparing the wages paid to employees with other businesses. This factor is used where firms produce similar goods. If you use it in comparing firms that are producing differentiated products, then you end up with false results. 3. Power Used The amount of power used determines the size of business. Don't rely on this factor as it is inaccurate because the amount of power used by any business maybe more or less. 4. Raw Materials Used The annual consumption of raw materials of any firm determines its size. It used only on those firms that are producing similar products. 5. Volume of the Output This factor is used on those firms that are producing homogeneous goods. Article Source: ]
Expert answered|selymi|Points 10036|

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