Solved Business Organization Complete BCOM SEM I Question Bank
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University of Lucknow BCOM SEM I Business Organisation Unit: I Q1.What do You Understand By opitimum Size of Bussiness Unit.Explain the Factor Determine the Optimum Size of Bussiness Unit. Ans: Factors Determining Size of the Firm Every business is striving towards attaining the optimum size. Usually, any business starts as a small entity, and then during its operating period, it expands till it reaches the optimum size. Capital Investment Factor The capital employed by shareholders in the form of share capital, reserves, and surplus (net worth) determines the size of the business. It is mainly used to compare two firms or more that are producing similar or differentiated products. 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