5. business objectives Flashcards
1
Q
what is profit maximisation
A
where MC=MR
the issue with the objective is that it is difficult to calculate MC and MR
2
Q
what is revenue maximisation
A
achieving as high a total revenue as possible
MR = 0
3
Q
what is survival
A
making enough revenue to cover costs and hence survive
4
Q
define utility
A
aiming to achieve as much satisfaction as possible
can be a charity aim to help others
5
Q
what is profit satisficing
A
the aim to make a satisfactory level of profit so that a business can also focus on other objectives providing that a minimum profit level is reached
6
Q
identify 6 business objectives
A
profit maximising
revenue maximising
survival
social objectives
providing a service
7
Q
A
