1.5.1 Business objectives and stakeholder Flashcards
1
Q
profit
A
a total income of a business (revenue) less total costs.
2
Q
business objectives
A
the aims or targets that s business works towards.
3
Q
market share
A
the percentage of total market sales held by one brand or business.
4
Q
social enterprise objectives
A
has social objectives as well as an aim to make a profit to reinvest back into the business.
5
Q
stakeholder
A
any person or group with a direst interest in the performance and activities of a business.
6
Q
benefits of setting business objectives
A
- they give workers and managers a CLEAR TARGET to work towards.
- taking DECISIONS will be focus on ‘WILL IT HELP ACHIEVE our objectives?
- clear and measurable objectives HELP UNITE the whole business towards the same goal.
- business managers can COMPARE how the business has performed to their objectives - to see if they have been successful or not.
7
Q
Profit are needed to:
A
- pay a RETURN to the owners of the business for the capital invested and the risk taken
- provide FINANCE for further investment in the business.
8
Q
returns to shareholders are increased in two ways:
A
- increasing PROFIT
The share of profit paid to shareholder as dividends. - increasing SHARE PRICE.
This not only making profits, but also give business a good change of growth and higher profit in the future.
9
Q
who are the stakeholders
A
owners workers managers consumers government the whole community banks
10
Q
business objectives in private sector
A
> make profit > growth > increase shareholder returns > increase market share > Survival > provide a service to the community
11
Q
business objectives in public sector
A
- financial = meet profit targets by government
- service = provide service to the public and meet quality targets set by government
- social = protect or create employment in certain areas.
