Business – 1.3 Size of business – Measurements of business size | e-Consult

For a retail chain (Alpha Retail), turnover is the most appropriate single measure of size because retail performance is primarily driven by sales volume and market reach; turnover directly reflects the scale of its consumer transactions.

For a professional services firm (Beta Consulting), the number of employees is the most suitable indicator. Professional services rely heavily on human capital, and the size of the workforce better captures the firm’s capacity to deliver services than turnover, which is relatively modest.