Business Objectives

Question 1

List 3 business objectives

Answer 1

To make a profit
To increase market share
Fulfil a market need

Question 2

Define profit

Answer 2

The surplus earned remaining when the expenses are deducted from the revenues earned. Most business main objective is to earn a profit.

Question 3

Define market share

Answer 3

Is the percentage of industry sales a business receives. Business can increase market share by advertising.

Question 4

How can a business identify their markets needs?

Answer 4

Online surveys
Interviews of target market businesses
Research; online, newspapers and books

Question 5

Define market need

Answer 5

Market needs are the products or services in which a target market requires. Businesses can discover their target market needs by surveys.

Question 6

Define social need

Answer 6

Are the actions which the community expect from a business.
Eg- recycling all recyclable wastes
- Thank you water

Question 7

List three examples of shareholder expectations

Answer 7

Capital gains on shares
Dividends on the business profit
Voting rights

Question 8

Define business objectives

Answer 8

Are the goals set out by the business to be achieved within a period of time.
Eg- a certain amount of profit