Business Objectives

Question 1

List 4 business objectives

Answer 1

• maximising sales
• maximising profits
• survival
• growth

Question 2

Describe maximising sales and justify why a business might use this objective with specific examples

Answer 2

Focus on maximising sales will often mean reducing prices to increase sales.

Justify:
Businesses working in a competitive market where they want to grow its market shares

E.g Tesco/asda

Question 3

Describe maximising profits and justify why a business might use this objective with specific examples

Answer 3

Main aim is to make as big a profit as possible.

Justify:
Applies to private sector organisations and social enterprises where profit is a focus for individuals or causes

Question 4

Describe survival and justify why a business might use this objective with specific examples

Answer 4

Small family firms may be more concerned about keeping the business safe from take over large enterprises

Justify:
Small businesses facing aggressive competition

Question 5

Describe growth and justify why a business might use this objective with specific examples

Answer 5

Becoming larger so it can take advantage of economies of scale so it’s more efficient through having lower costs

Justify:
•Public sector to reduce costs