business objectives Flashcards
define objectives
goals or targets assigned by a business
define profits satisficing
making sufficient profits to satisfy the needs of the owner
define revenues
money generated from sale of goods and services
define large business
business that employs more than 250 people
define small business
business that employs less than 50 people
define profit maximization
making as much profit at a given period of time
why are clear business objectives important for owners
to help business owners assess their weaknesses and take steps to overcome them, to motivate in order to keep the business running
list financial objectives
make profit, survival, growth, increase market share, financial security
define dividends
shares of profit paid to shareholders in a business
why are clear business objectives important for employees
to work towards a common goal that is easily achieved
why is survival an important objective
operating in a competitive environment with harsh trading conditions
why is growth an important objective
growth in revenue allows business to enjoy the economies of scale and stakeholders to have employment opportunities, tax revenues etc
why is an increase market share an important business objective
with higher market share business can charge higher prices, increase their reputation and win over competitors which increase their revenue, increase their profit and dominate the market
why is financial security an important objective
expanding business may be time-consuming and cost a lot, so the owner wants to make enough profit for themselves
list non-financial objectives
social objectives, challenge, independence and control, personal satisfaction
why are social objectives important
to improve the well-being of humans
why is challenge important
some people love challenges like starting a business as it keeps them motivated
why are independence and control important
to do their work as they wish without being instructed and take control of their own future and achieve their objectives
why is personal satisfaction important
some people hate to work for others because they can’t develop their interests and hobbies into business
list reasons for objectives to be changed
market conditions, legislation, internal reasons, technology, performance
