Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Studies > 1.5 > Flashcards

1.5 Flashcards

1
Q

What is a business objective?

A

An aim or target a business works towards.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Why are objectives important for businesses?

A

They help to make a business successful by providing clear targets and focus.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Name one benefit of setting business objectives.

A

They give workers and managers a clear target to work towards, which helps motivate people.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How do objectives help decision-making?

A

Decisions can be focused on whether they help achieve the objectives.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How do objectives help measure business success?

A

Managers can compare performance against objectives to determine success.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Do all businesses, regardless of size or age, need objectives?

A

Yes, objectives are important for all businesses, small or large, new or established.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Give an example of why a business might be started.

A

To provide employment and security for the owner or family.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is a common charitable objective for some businesses?

A

To provide service to the community.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

List the most common objectives for businesses in the private sector.

A

Business survival
Profit
Returns to shareholders
Growth of the business
Market share
Service to the community

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is meant by “business survival” as an objective?

A

Ensuring the business continues to operate in challenging conditions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What does “returns to shareholders” mean as an objective?

A

Providing financial rewards to those who have invested in the business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Why might a business prioritize “growth” as an objective?

A

To expand operations, increase market presence, and gain more customers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What does achieving “market share” mean for a business?

A

Increasing the proportion of sales in a specific market compared to competitors.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How do objectives unite a business?

A

Clear and measurable objectives align the entire business towards the same goal.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the primary focus for a newly established business or one in an economic recession?

A

Survival.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What external factor can make a business focus on survival?

A

The emergence of new competitors.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What might managers do to ensure survival during tough times?

A

Lower prices to maintain sales, even if it reduces profits.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Why is profit a critical objective for privately owned businesses?

A

To provide returns to owners for their capital investment and the risks taken.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are two main purposes of profit for a business?

A
  1. To pay returns to the owners.
  2. To finance further investment in the business.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What might happen if a business fails to make any profit?

A

The owners may close the business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Why might businesses avoid maximizing profit at all costs?

A

High prices may deter consumers, and new competitors may emerge, reducing long-term profits.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is meant by a “satisfactory level of profit”?

A

A profit level that satisfies owners without excessive work hours or high taxes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Who owns limited companies?

A

Shareholders.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is a common objective for managers of limited companies?

A

Increasing returns to shareholders.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Why do managers aim to increase returns to shareholders?

A

To discourage shareholders from selling shares and to keep their jobs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What are two ways to increase returns to shareholders?

A
  1. Increasing profit and dividends.
  2. Increasing the share price.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

How can managers boost share prices?

A

By making profits and implementing growth plans for future success.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What does business growth typically measure?

A

The value of sales or output.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Why is growth a common business objective?

A

To make jobs more secure, increase managers’ salaries and status, and spread business risks.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What new opportunities does business growth provide?

A

Expanding into new products and markets.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

How does growth help increase market share?

A

By boosting sales volume.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What cost advantage can businesses gain through growth?

A

Economies of scale.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Why is meeting customers’ needs crucial for growth?

A

Customer satisfaction is necessary for sustainable growth.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Define “profit.”

A

Total income (revenue) minus total costs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Why is growth often linked to manager motivation?

A

It increases their salaries and enhances their status as the business expands.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

How does growth help in risk management for a business?

A

By diversifying into new products and markets.

37
Q

What is an economy of scale?

A

Cost advantages achieved as a business expands its operations.

38
Q

What happens if a business does not satisfy its customers while aiming for growth?

A

It risks losing customers and failing to achieve sustainable growth.

39
Q

What is market share?

A

The percentage of total market sales held by one brand or business.

40
Q

How is market share calculated?

A

Market share % = (Company sales ÷ Total market sales) × 100

41
Q

What is Company A’s market share if it sells $20 million in a $100 million market?

A

20%.

42
Q

What are the benefits of increased market share?

A

Good publicity for being seen as “the most popular.”
Increased influence over suppliers.
Increased influence over customers, including in pricing.

43
Q

What is a social enterprise?

A

A business with social objectives as well as an aim to make a profit to reinvest back into the business.

44
Q

Who operates social enterprises?

A

Private individuals, as they are part of the private sector.

45
Q

What are the three common objectives of a social enterprise?

A

Social: Provide jobs and support disadvantaged groups.
Environmental: Protect the environment.
Financial: Make a profit to reinvest in the enterprise.

46
Q

Give an example of a social enterprise.

A

RangSutra in India.

47
Q

What is RangSutra’s core value?

A

Respect for both the producer and the customer.

48
Q

How does RangSutra ensure fair practices?

A

By providing a fair price to producers and quality products to customers, with profits reinvested into improving community life.

49
Q

What does Google’s growth objective demonstrate?

A

Diversification beyond its original purpose as a search engine.

50
Q

Name some industries Google (via Alphabet Inc.) has expanded into.

A

Robotics, mapping, video broadcasting, telecommunications, scholarships, and smoke alarms.

51
Q

Why might a social enterprise focus on environmental objectives?

A

To protect the environment as part of its broader social goals.

52
Q

What does good publicity from increased market share lead to?

A

Enhanced reputation as a popular or leading brand.

53
Q

Why do suppliers prefer working with businesses that have a larger market share?

A

Larger businesses offer more opportunities and stability, making suppliers eager to partner with them.

54
Q

Why do business objectives change over time?

A

Business objectives change due to evolving circumstances, such as achieving initial goals, adapting to new challenges, or shifting market conditions.

55
Q

Give an example of a business objective changing due to survival.

A

A profit-making business in a country facing a serious economic recession may shift its short-term objective to survival.

56
Q

What might a new business focus on after surviving its first few years?

A

Working towards higher profits.

57
Q

How can achieving a higher market share affect business objectives?

A

It might lead to setting a new objective of earning higher returns for shareholders.

58
Q

What is a stakeholder?

A

Any person or group with a direct interest in the performance and activities of a business.

59
Q

Name some internal stakeholders of a business.

A

Owners, workers, and managers.

60
Q

Name some external stakeholders of a business.

A

Consumers, government, the whole community, and banks.

61
Q

Why are stakeholders important to a business?

A

They have a vested interest in how the business is run and are affected by its activities and performance.

62
Q

How might a government act as a stakeholder?

A

By regulating the business and expecting it to follow laws, pay taxes, and create employment.

63
Q

How are banks stakeholders in a business?

A

They provide loans and expect timely repayments and financial stability from the business.

64
Q

How might workers’ objectives differ from those of owners?

A

Workers may focus on job security and fair wages, while owners aim for profitability and return on investment.

65
Q

Why is the community considered a stakeholder in a business?

A

The community is affected by the business’s environmental impact, job creation, and contribution to local development.

66
Q

How do consumers act as stakeholders?

A

They demand quality products or services at fair prices and are directly impacted by the business’s offerings.

67
Q

What might managers aim for as stakeholders?

A

Higher salaries, job satisfaction, and the success of their strategies in the business.

68
Q

Who are the owners in a business, and what are their main features?

A

Owners put capital into the business, share profits if successful, risk losing investments if the business fails, and are risk-takers.

69
Q

What are the most likely objectives for business owners?

A

Share of the profits as a return on investment.

Growth of the business to increase the value of their investment.

70
Q

Who are considered workers in a business, and what are their main features?

A

Workers are employed by the business, follow managers’ instructions, may need training, and face the risk of redundancy if there isn’t enough work.

71
Q

What are the most likely objectives for workers?

A

Regular payment for their work.

Job security and a contract of employment.

Job satisfaction and motivation.

72
Q

Who are the managers in a business, and what are their main features?

A

Managers are employees who control workers, make important decisions, and are responsible for the success or failure of the business through their choices.

73
Q

What are the most likely objectives for managers?

A

High salaries due to the importance of their role.

Job security, depending on their success.

Growth of the business for increased status and power.

74
Q

Who are customers, and why are they important to businesses?

A

Customers buy goods or services. Without them, a business will make losses and fail. Successful businesses conduct market research to meet customer needs.

75
Q

What are the most likely objectives for customers?

A

Safe and reliable products.
Value for money.
High-quality, well-designed products.
Reliable service and maintenance.

76
Q

What role does the government play in business, and what are its main features?

A

The government is responsible for the country’s economy, passes laws to protect stakeholders, and expects businesses to succeed, employ workers, and stay within the law.

77
Q

What are the most likely objectives for the government?

A

Successful businesses that create jobs, pay taxes, and boost economic output.

Businesses that comply with laws affecting business activity.

78
Q

How does the community interact with businesses, and what are its main features?

A

The community is affected by business activity, including pollution and product safety. Businesses also create jobs and provide beneficial products, like medicines.

79
Q

What are the most likely objectives for the community?

A

Jobs for the working population.

Environmentally safe production.

Safe, socially responsible products.

80
Q

What role do banks play in business, and what are their main features?

A

Banks provide finance for operations and expect businesses to remain liquid, pay interest, and repay capital lent.

81
Q

What are the most likely objectives for banks?

A

Timely repayment of loans and interest.

Financial stability of the business.

82
Q

What are the objectives of public sector businesses?

A

Financial: Meet profit targets set by the government, with profits reinvested or handed over to the government.

83
Q

What is the service objective of public sector businesses?

A

To provide a service to the public and meet quality targets set by the government, such as reliability and punctuality for trains and postal services or achieving targets in health and education.

84
Q

What is the social objective of public sector businesses?

A

To protect or create employment in regions with limited job opportunities, especially in economically disadvantaged areas.

85
Q

Why can satisfying stakeholder objectives be challenging for businesses?

A

Businesses often need to satisfy the objectives of multiple stakeholder groups, which can conflict with one another.

86
Q

What is an example of a potential conflict between stakeholders?

A

Owners may want higher profits, while workers seek higher wages, which can reduce profits.

87
Q

How do managers handle conflicting objectives?

A

Managers must compromise and balance the differing objectives of stakeholders to ensure the business operates effectively.

88
Q

Why might business objectives change over time?

A

Objectives may shift due to economic conditions, such as focusing on growth during expansion or survival during a recession.

89
Q
A

Business Studies (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions