3.1 What Is Business

Question 1

What are mission statements?

Answer 1

Mission statements are the overall aim of the business.

Question 2

What are corporate and functional objectives?

Answer 2

Corporate objectives are the overall goals of the business whereas functional objectives are the objectives of each department e.g HR, finance, marketing and operations

Question 3

Businesses are not always profit maximisers and can sometimes prioritise market share or prioritise being environmentally friendly.

Question 4

What are advantages and disadvantages of a sole trader?

Answer 4

Advantages
- freedom, your the boss
- profit is kept to yourself
- simple, less paperwork is required than ltds

Disadvantages
- unlimited liability
- sources of finance
- no technical expertise