3.1.1

Question 1

What does SMART stand for?

Answer 1

○ Specific 
○ Measurable 
○ Achievable 
○ Realistic
○ Timely

Question 2

What is a corporate aim?

Answer 2

○ Things that a business intends to do in the long-term, its purpose or reason for being
○ A general statement of what a business intends to achieve

Question 3

What is a corporate objective?

Answer 3

○ More detailed than an aim

○ A target or outcome which a business sets to achieve the aims

Question 4

What is a corporate mission?

Answer 4

Overall purpose, making the aim more inspiring

Question 5

What type of business is less likely to have a mission statement?

Answer 5

Smaller business are less likely to have a mission (1 to 20 employees), whereas larger, more established businesses would have a one

Question 6

What is the hierarchy of objectives

Answer 6

1. Aims
2. Mission statement
3. Corporate objectives
4. Functional objectives

Question 7

What are some examples of SME objectives?

Answer 7

• To potentially expand or diversify
• To maintain competitiveness and market hold
• Ensure business survival
• Contribute to the market [sector]
• Entrepreneurial spirit and innovative ideas
• They are likely to have objectives based on profitability and finance
• Reduce unemployment
• Globalise/ become multi-national
• Contribute to the GDP/economy

Question 8

What influences the mission statement of a business?

Answer 8

• The purpose of the business
• The values of the business owners
• The standards and behaviours of the business
• The business strategy

Question 9

What is critical appraisal?

Answer 9

To evaluate a business’s mission statement and look at the positives and negatives