3.2 - Business objectives Flashcards

1
Q

Business ethics

3.2.1 - Business objectives

A

Business ethcis is concerned with the social responsibility or management towards the firm’s major stakeholders, the environment and society in general

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2
Q

Competitive advantage

3.2.1 - Business objectives

A

When a company has an advantage over another in selling a product or service

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3
Q

Corporate governance

3.2.1 - Business objectives

A

Practices, principles and values that guide a firm and its activites

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4
Q

Corporate social responsibility (CSR)

3.2.1 - Business objectives

A

Happens when companies integrate social and environmental concerns into their business operations and in their interaction with their stakeholders on a voluntary basis

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5
Q

Corporate strategy

3.2.1 - Business objectives

A

A company’s aims in general, and the way it hopes to achieve them - strategic objective which supports the achievement of corporate aims

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6
Q

Multinational

3.2.1 - Business objectives

A

A company with subsidiaries or manufacturing bases in several countries

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7
Q

Profit maximisation

3.2.1 - Business objectives

A

Profit maximisation is an output when marginal revenue = marginal cost, MC=MR

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8
Q

Revenue maximisation

3.2.1 - Business objectives

A

Revenue maximisation is an ouput when marginal revenue = zero (MR=0)

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9
Q

Sales maximisation

3.2.1 - Business objectives

A

Sales maximisation is achieving the highest level of output consistent with a firm making at least normal profit. The sales maxmising equilibrium output is where AC=AR

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10
Q

Satisficing

3.2.1 - Business objectives

A

Satisficing involves the owners setting minimum acceptable levels of achievement in terms of revenue and profit

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11
Q

Short-termism

3.2.1 - Business objectives

A

When a business pursues the goal of maximising short-term profits because of a fear of being taken over or having the stock mark down the value of the company. Short-termism may make it difficult for a business to follow longer-term business

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