3.2 - Business objectives Flashcards
Business ethics
3.2.1 - Business objectives
Business ethics is concerned with the social responsibility or management towards the firm’s major stakeholders, the environment and society in general
Competitive advantage
3.2.1 - Business objectives
When a company has an advantage over another in selling a product or service
Corporate governance
3.2.1 - Business objectives
Practices, principles and values that guide a firm and its activites
Corporate social responsibility (CSR)
3.2.1 - Business objectives
Happens when companies integrate social and environmental concerns into their business operations and in their interaction with their stakeholders on a voluntary basis
Corporate strategy
3.2.1 - Business objectives
A company’s aims in general, and the way it hopes to achieve them - strategic objective which supports the achievement of corporate aims
Multinational
3.2.1 - Business objectives
A company with subsidiaries or manufacturing bases in several countries
Profit maximisation
3.2.1 - Business objectives
Profit maximisation is an output when marginal revenue = marginal cost, MC=MR
Revenue maximisation
3.2.1 - Business objectives
Revenue maximisation is an ouput when marginal revenue = zero (MR=0)
Sales maximisation
3.2.1 - Business objectives
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
Satisficing
3.2.1 - Business objectives
Satisficing involves the owners setting minimum acceptable levels of achievement in terms of revenue and profit
Short-termism
3.2.1 - Business objectives
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
