business objectives Flashcards
1
Q
what is the aim of shareholders in a business
A
maximise profit
2
Q
what is the aim of managers and directors in a business
A
maximise sales or revenue
3
Q
what are the benefits of revenue maximisation
A
- manager/directors get higher bonuses
- helps a firm to gain market share
4
Q
what is sales maximisation
A
when a firm maximises the amount of sales made without making a loss(AC = AR)
5
Q
what is profit satisficing
A
when a firm makes enough profit to satisfy shareholders and workers, and uses the money to pursue other objectives
