Business Objectives Flashcards
What is sales?
The number of products sold by a business.
What is an aim?
A general goal for a business.
What is an objective?
A specific target that is set for a business to achieve
What are purposes of setting up objectives?
To guide decision makers, to provide a measurable target, to assist in raising finance, coordination
What is the role of objective in a running business?
Businesses can set a range of objective these are intended to help a business achieve its aims.
What are examples of business aims?
Growth, survival, profit maximization.
What is survival?
A business objective which must be achieved so a company can continue trading.
What is profit maximization?
Occurs when a business aims to make the highest possible profits from its activities.
Example of business objectives
Market share, customer satisfaction, shareholder value and social objectives.
What is market share?
Measures the percentage of sales in a particular market recorded by a business.
What is customer satisfaction?
Measures whether the product supplied by a business match or exceed the expectations of customers.
What is shareholder value ?
The financial benefits received by a companies shareholders.
What is dividends?
The financial rewards paid out by a company to its shareholders each year.
What are social objectives?
The goals of a business intended to help society in general or specific groups of people.
When would a business change its objectives?
A business is most likely to change its objectives over time as it becomes larger.
