1.5.3 Business Objectives

Question 1

Define business objectives

Answer 1

A business objective is a goal or aim that a business wants to achieve.

Question 2

What does SMART stand for?

Answer 2

-Specific
-Measurable
-Achievable
-Realistic
-Timely

Question 3

What is shrinkflation?

Answer 3

Where a manufacturer keeps the price the same but makes the product smaller.

Question 4

What is profit maximisation?

Answer 4

Profit maximisation is when a business wants to make the most profit possible from a given amount of resources.

Question 5

What are the two main objectives of a business?

Answer 5

1.) Survival
2.) Profit maximisation

Question 6

What are the 6 other business objectives?

Answer 6

1.) sales maximisation
2.) market share
3.) cost efficiency
4.) employee welfare
5.) customer satisfaction
6.) social objectives

Question 7

What is sales maximisation?

Answer 7

This is an objective of a business, which means selling as much as possible without making a loss.

Question 8

What is market share?

Answer 8

The portion of a total market that is controlled by a particular product or service.

Question 9

What is cost efficiency?

Answer 9

This means spending as little money as possible to achieve the same objective.

Question 10

What is employee welfare?

Answer 10

The efforts made by a business to take care of employees whilst at the workplace.