Business objectives

Question 1

To make a profit

Answer 1

Profit is the remaining money after expenses are paid. Profit is essential for any businesses to survive and grow. By generating more revenue than expenses, a business earns a profit which can be distributed to owners and shareholders.

Question 2

To increase market share

Answer 2

Market share is the proportion of the total sales the business has in an industry for a particular good or service for a particular good or service, expressed as a percentage. A business typically wants to increase its market share to become more competitive within the industry. Increase sales usually means a business can also increase their profits.

Question 3

To meet shareholder expectations

Answer 3

Shareholders are people who have invested some of their own money into a business by purchasing company shares. As part owners of a business, shareholders expect a return on their investment. Therefore, shareholders either expect an income from the business in the form of dividends or they hope to sell their shares at a higher price in the future after the business has grown.

Question 4

To fulfil a market need

Answer 4

A business fulfils a market need by providing products and services which meet the desires of a group of customers with similar needs. When our businesses products or services fulfil a market need, it can attract more sales and generate revenue from customers. By meeting these customers’ needs a business can then develop a loyal customer base that generates consistent income and helps a business make a profit.

Question 5

To fulfil a social need

Answer 5

Social needs are more focused on the community and how the business can look to improve the lives of others. By making considered choices, businesses can help address these issues and make a profit at the same time.

Question 6

What are business objectives

Answer 6

business objectives are goals the business is aiming to achieve in the future.