Business objectives

Question 1

Make a profit

Answer 1

Essential for any business to survive and grow by generating more revenue than expenses, a business earns a profit which can be distributed to owners and shareholders. Therefore business owners likely to attempt to increase revenue or decrease expenses to boost their profits.

Question 2

Increase market share

Answer 2

Typically wants to increase market share to become more competitive.
Increase sales = increased profits
Increased market shares doesn’t always equal increased profit

Question 3

Meet shareholder expectations

Answer 3

People invested a sum of their own money into a business by purchasing company shares. Part owners , shareholders expect a return on their investment. Shareholders expect an income from the business from dividends or hope to sell shares at a higher price

Question 4

Fulfil a market need

Answer 4

Business fulfils a market need by providing products and services which meet desires of a group of customers with similar needs. When a businesses products or services fulfil a market need, can attract more sales and generate revenue from customers.

Question 5

Fulfil a social need

Answer 5

Improves community and environment through its business activities. Community can face issues such as poverty, homelessness and drug or alcohol abuse. Businesses can help address these issues and make a profit at the same time.