Business objectives 1.1.2 Flashcards
1
Q
what are objectives?
A
objectives are quantifiable targets to be achieved in a given time frame.
2
Q
what is profit maximisation?
A
this is to produce at the level of output where surplus of sales reveue over total costs is at it highest : Sr-TC= profit.
3
Q
what is sales maximisation?
A
sales maximisation is to achieve the highest amount of sales by volume or by value.
4
Q
what is sales volume?
A
sales volume is when amount of sales is expressed by number of units sold.
5
Q
what is sales value?
A
Sales value is when amount of sales is expressed as total sum of money spent by consumers.
6
Q
what is profit satisficing?
A
this is when you make enough profit to be satisfied but not enough to be motivated.
