1.3 - setting aims and objectives

Question 1

aim

Answer 1

a general goal of a business [ long term ]

Question 2

objective

Answer 2

a specific target

Question 3

public sector organisation

Answer 3

owned by the government , main objective to provide services to the public

Question 4

private sector organisation

Answer 4

owned by individuals, objective is profit

Question 5

purpose of setting an objective - 3

Answer 5

• helps make decisions
• act as motivation
• help investors understand what direction a business is going in

Question 6

survival

Answer 6

survival is for new businesses or businesses that less money

Question 7

earning

Answer 7

earning a profit is a long- term objective for all businesses

Question 8

shareholder value

Answer 8

the better the business is run the more demand there will be for shares

Question 9

market share

Answer 9

measure of sales of one product or business as a percentage of the total market sales

Question 10

calculation of market shares

Answer 10

sales of a product x 100 / total market sales

Question 11

growth

Answer 11

where the business wants to open more shops, sell more products or increase its revenue - can be international or national

Question 12

effective objective should include: - 4

Answer 12

• state what the target is
• when it should be achieved
• who has to achieve it
• how to achieve it

Question 13

to achieve a target, what is needed? -3

Answer 13

• people
• money
• equipment

Question 14

recession

Answer 14

a period of temporary economic decline