3.1 - What Is Business?

Question 1

Business objectives - corporate objective

Answer 1

• Goals of a business as a whole
• Will depend on the size of the business

Question 2

Business objectives - functional objectives

Answer 2

• sometimes departmental objectives
• objectives of each department
• more detailed and specific
• functional objectives often contribute to corporate objectives

Question 3

SMART objective’s

Answer 3

• specific - more specific, more likely to achieve
• measurable - not measurable = not able to know if achieved
• agreed - everyone involved needed to know and agree on objectives
• realistic - can’t be too ambitious, impossible objectives may demotivate staff
• timely - without a specific time, staff may not see t as urgent

Question 4

Different types of objectives :

Answer 4

• profit objectives
• growth objectives
• survival objectives
• cash flow objectives

Question 5

Social and Ethical objectives :

Answer 5

Social - benefitting society and people in need
Ethical - based on moral principles (eg treatment of staff and environment)
Non-profit - eg charities, set up to achieve social or ethical goals
For-profit - usually focus on making a profit, however social and ethical objectives are becoming more important as society is starting to care more about these issues.

Question 6

Mission statements

Answer 6

-The mission statement is a written description of the overall purpose or main corporate aims
-intends to make all stakeholders aware of what the business does and to encourage employees to work towards its aim
-statements should tell you the purpose of the business and gives clues about the. Companies beliefs
-can give staff a shared sense of purpose