3.2 - Objectives Flashcards
1
Q
What are the 4 primary business objectives?
A
Profit Maximisation
Revenue Maximisation
Sales Maximisation
Satisficing
2
Q
What are the 4 main reasons for differing objectives?
A
Managerial priorities/utility
Information Gaps
Small business aims
State Ownership
3
Q
How can information gaps affect business objectives?
A
Inaccurate marginal cost + revenue information
May affect pricing strategy
4
Q
What is Cost plus pricing?
A
Price = AC + variable profit
Charge arbitrary profit on top of unit cost
5
Q
How do small firms aim affect business objectives?
A
Lifestyle Enterprise
May target consumer base rather than profit
