3.Business Objectives And The Role Of Stakeholders

Question 1

Business objectives

Answer 1

Business objectives are what the business is trying to achieve. Examples are profit,growth, survival and providing a service. Objectives vary from business to business and will change with time.

Question 2

Mission statement

Answer 2

Brief summary of main objectives a business or organisation had

Question 3

Satisficing

Answer 3

Means that a business will make enough profit to enable it to meet its needs, and not make as much profit as possible, etc charity.

Question 4

Dividend

Answer 4

Payment made to its shareholders from the profits made by a private or public limited company

Question 5

Private sector

Answer 5

Part of business activity owned by private individuals. This is the greater part of business activity and includes sole proprietors, partnerships and private and public limited companies

Question 6

Public sector

Answer 6

Part of business activity controlled by local and central government, including health, education, fire service, police and the post office.

Question 7

Public corporation

Answer 7

Organisation owned by national government

Question 8

Stakeholders

Answer 8

Individual or group of people who have an interest in a business, including workers, customers, owners and the local community