1.4 business objectives

Question 1

business objective

Answer 1

• a desired outcome or specific result that a business intends to achieve
• gives direction to the business as it provides a path to follow, increasing chances of success

Question 2

make a profit

Answer 2

• make a profit + maximise it
• required in order to ensure their business can continue existing

Question 3

improve efficiency

Answer 3

• reduces waste generated by the business which ultimately reduces the costs of the business
• increases the business output whilst reducing or maintaining the same amount of input
• using its current resources to the best of their ability

Question 4

improves effectiveness

Answer 4

• refers to the ability of the business to meet its objectives
• should consider its effectiveness in relation to all the objectives that its set and be looking to improve

Question 5

market share

Answer 5

market share refers to the proportion of total sales in a given market or industry that is controlled or held by a business (calculated for a specific period of time)

Question 6

increase market share

Answer 6

• links to wanting to make a profit
• if a business can increase percentage of market share that they possess, they can also more likely increase their profit margin

Question 7

fulfil a market need

Answer 7

• a business must ill a gap in the market that exists, thus fulfilling this market need is an important objective that contributes to its success

Question 8

fulfil a social need

Answer 8

• aims to provide goods and services for the purpose of making the world a better place
• may generate an income but holds a primary purpose of doing good

Question 9

meet shareholder expectations

Answer 9

• meeting shareholder expectations becomes an objective as their expect to make a return on their investment