1.2 Business Objectives Flashcards
1
Q
Profit
A
objective is central for most businesses
revenue - expenses = profit
2
Q
Market Share
A
proportion of total sales in a market or industry
3
Q
Efficiency
A
how well businesses use resources to achieve business objectives
4
Q
Effectiveness
A
degree to which a business has achieved its stated objectives
5
Q
Fulfill A Market Need
A
provide goods/services not readily available in the market
6
Q
Fulfill A Social Need
A
provide goods/services for the purpose of making the world a better place
primary purpose is the common good
7
Q
Meet Shareholder Expectations
A
shareholders expect to make a return on their investments
they expect their business investments to make a profit, as they receive dividends (proportion of profit)
