1 - Business Objectives

Question 1

What Are The 6
Business Objectives?

Answer 1

~ Profit.

~ Growth.

~ Survival.

~ Cash flow.

~ Social.

~ Ethical.

Question 2

One Business Objective Is Profit, What Does This Mean?

Answer 2

To achieve a sales
revenue that is higher than total costs.

Question 3

What Is The Formula For Profit?

Answer 3

Sales Revenue x Total Costs

Question 4

One Business Objective Is Growth, What Does This Mean?
(2 Points)

Answer 4

~ To increase in size either by value or volume of sales.

~ This may be organically or externally.

Question 5

What Are Examples Of Organic Growth?
(2 Points)

Answer 5

~ Opening new stores.

~ Launching new products.

Question 6

What Are Examples Of External Growth?
(2 Points)

Answer 6

~ Joining with other businesses.

~ Taking over other businesses.

Question 7

One Business Objective Is Survival, What Does This Mean?
(2 Points)

Answer 7

To continue to exist as a business.

~ May be the primary objective of a start up business.

Question 8

One Business Objective Is Cash Flow, What Does This Mean?

Answer 8

To ensure sufficient cash is available to
meet day to day expenses.

Question 9

One Business Objective Is Social, What Does This Mean?

Answer 9

~ To behave in a way which benefits society.

~ E.g. To create employment.

Question 10

One Business Objective Is Ethical, What Does This Mean?

Answer 10

To behave in a way which is considered morally correct.

Question 11

Define The Acronym SMART

Answer 11

S - Specific
M - Measurable
A - Achievable
R - Relevant
T - Timely

Question 12

What Is A Mission Statement?

Answer 12

Is a written statement, stating the purpose of an organisation.

Question 13

What Is The Mission Statement Order?
(5 Points)

Answer 13

~ Mission statement.

~ Corporate aims.

~ Corporate objectives.

~ Corporate strategy.

~ Business tactics.

Question 14

What Are Corporate Aims?

Answer 14

The long term targets and plans to fulfil the mission statement.

Question 15

What Are Corporate Objectives?

Answer 15

The medium to long term quantifiable targets to fulfil the mission statement.

Question 16

What Are Corporate Strategies?

Answer 16

The actions to be taken by the business to achieve the objectives.

Question 17

What Are Business Tactics?

Answer 17

Actions taken on a day to day basis to support the strategy.

Question 18

Why Do Businesses Set Objectives?
(5 Points)

Answer 18

~ Common sense of purpose.

~ Motivate employees.

~ Create reward system.

~ Measure and review performance.

~ Inform decisions to improve performance.

Question 19

What Is Revenue?

Answer 19

The money coming in from the sale of goods and services.

Question 20

What Is The Formula For Revenue?

Answer 20

Selling Price x Quantity Sold

Question 21

What Are Total Costs?

Answer 21

Is the money going out to provide for and generate sales.

Question 22

What Are Fixed Costs?

Answer 22

Stay the same regardless of output.

Question 23

What Are Variable Costs?

Answer 23

Change in relation to the number of items produced.

Question 24

What Is The Formula For Total Costs?

Answer 24

Fixed Costs + Variable Costs