BUSINESS OBJECTIVES AND THE ROLE OF STAKEHOLDERS

Question 1

Business objectives

Answer 1

Business objectives are what the business is trying to achieve. Examples are profit, growth, survival and providing a service. Objectives vary from business to business and will change with time.

Question 2

Mission statement

Answer 2

A mission statement is a brief summary of the main objectives a business or organisation has.

Question 3

Satisficing

Answer 3

This means that a business will make enough profit to enable it to meet its need, and not make as much profit as possible.

Question 4

Dividend

Answer 4

A payment made to shareholders from the profits made by a private or public limited company.

Question 5

Market Share

Answer 5

This is the amount of a market that a business controls. It is measured as a percentage.

Question 6

Private sector

Answer 6

The part of business activity owned by private individuals. This is the greater part of business activity and includes sole proprietors, partnerships and private and public limited companies.

Question 7

Public sector

Answer 7

The part of business activity controlled by local and central government including health, education, fire service, police and Post Office.

Question 8

Public Corporation

Answer 8

An organisation owned by national government.

Question 9

Stakeholders

Answer 9

An individual or group(s) of people who have an interest in a business, including workers, managers, owners, customers, suppliers, government, the local community, competitors and interest & pressure groups.