1.3.1 Financial aims and objectives

Question 1

Name 4 financial aims

Answer 1

-Maximise Profit
-Grow market share
-Maximise Sales
-Survival

Question 2

Name 4 non-financial aims

Answer 2

-Be ethical
Be Independent
-Personal satisfaction
-Challenge

Question 3

Define a aim of the business

Answer 3

A Aim is the Main goal the business wants to achieve

Question 4

Define a objective of the business

Answer 4

A objective is What helps the business achieve the Aim

Question 5

The aims and objectives will change for a business when

Answer 5

• Consumer and Employment law
• Technology
• Interest and exchange rates
• Consumer Spending

Question 6

Explain a Financial Aim a Entrepreneur could Aim For
(3 Marker)

Answer 6

An entrepreneur may aim for survival (P) This is because most businesses struggle to cover their overheads in the first year of trading (S) Therefore the business will want to make just enough revenue to cover costs (S)

Question 7

Explain a Non-Financial Aims a Entrepreneur Could Aim For (3 Marker)

Answer 7

A non-financial aim could be independence (P) An entrepreneur is able to make their own decisions when running a business (S) instead of being told what to do as an employee (S)

Question 8

Explain Why Business Set Aims and Objectives (6 Marker)

Answer 8

Aims and objectives provide a focus for employees (P) This is because it is a goal all employees have to work towards (S) This will help the business become more efficiency (S) As a result the productivity of the workforce should increase (S)