1b Business objectives

Question 1

Make a profit

Answer 1

Profit is essential for any business to survive and grow

• Generate a larger revenue than expenses
• Profits can be reinvested into the business for it to grow

Question 2

Increase market share

Answer 2

A business typically wants to increase it’s market share to become more competitive within an industry

Question 3

Meet shareholders expectations

Answer 3

Shareholders are people who have invested an amount of their own money into a business by buying company shares

• shareholders expect a return on their investment
• Only private and public businesses have shares.
• businesses that consistently earn a profit then have the funds and are more likely to to pay dividends to shareholders

Question 4

Fulfil a market need

Answer 4

A business fulfils a market need by providing products and services whtch meet desires of a group of customers with similar needs.

• can attract more sales and generate revenue from customers.
• Fills a “gap in the market”.

Question 5

Fulfil a social need

Answer 5

A business fulfils a social need by improving the community and environment through its business activities.
- Fulfilling a social need often improves business reputation witch can increase sales and therefore market share.

Question 6

What are the 5 market objectives

Answer 6

Make a profit
Increase market share
Meet shareholder expectations
Fulfil a market need
fulfil a social need.