Aims and Objectives Of A Business

Question 0

What is profit maximisation?

Answer 0

Making as much profit from each sale as possible. May mean rising prices and/or cutting costs. Popular objective in Ltd and PLC companies as shareholders should receive a higher dividend from these profits

Question 1

Describe the objective of survival

Answer 1

Neither making a profit or a loss, during times of economic recession covering costs and break even. Usually an objective of a company that has just started

Question 2

Name the types of sales objectives

Answer 2

Growth in sales turnover, increase in market share, expansion of the product range, selling into more areas of the world

Question 3

Describe the objective of growth in sales turnover

Answer 3

For example, increasing the number of products sold by 10% each year. The increase in sales turnover should lead to higher profits

Question 4

Describe the objective of increase in market share

Answer 4

For example, increasing market share by 1% each year. This could result in customers stop buying a rival companies product and start buying yours. This could make the company the market leader

Question 5

Describe the objective of expansion of product range

Answer 5

Selling a wider variety of products into more markets. This could mean researching and developing new products

Question 6

Describe the objective of selling into more areas of the world

Answer 6

Developing products to sell in different parts of the world or selling existing products to different regions of the UK