On what basis a firm is categorised into small size or mid size

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1. The classification of firms into small, mid-size, or large categories typically depends on several factors, and the criteria can vary by industry, country, and specific regulations. Here are some common factors used to determine the size of a firm:

   1. Number of Employees: One of the most common criteria is the number of employees. Small firms often have fewer employees (e.g., under 50), while mid-sized firms may have between 50 and 250 employees.

   2. Revenue or Turnover: Financial metrics such as annual revenue or turnover are also used. For instance, small firms may have annual revenues below a certain threshold, while mid-sized firms fall within a specific revenue range.

   3. Asset Size: The total value of assets owned by the firm can be another criterion. This may include physical assets, investments, and other financial resources.

   4. Market Share or Reach: The firm’s market presence or share in its respective industry can play a role in classification. Smaller firms might serve a local market, while mid-sized and larger firms might operate regionally or nationally.

   5. Nature of Services: Some classifications may also consider the types of services offered and the complexity of operations. For example, in professional services like Accounting, the number of partners and the complexity of services provided can be indicators.

   6. Experience and Expertise: Although not a direct measure of size, the experience and qualifications of the team (including CAs or partners) might indirectly reflect the firm’s capability, which can influence its size category.

   Each country may have its own specific definitions and thresholds for small, mid-sized, and large firms, often set by government or industry associations for purposes such as access to funding, regulatory requirements, and economic statistics. If you’re looking for specific definitions, it may be helpful to refer to the guidelines provided by relevant authorities or industry bodies in your region.

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