Business Objectives (CH 2)

Question 1

Profit Maximisation

Answer 1

A business strategy to find the best price and production levels to achieve highest possible profit

Question 2

Sales Maximisation

Answer 2

When a firm aims to sell as much of their good/service without making a loss

Question 3

Customer Satisfaction

Answer 3

Measures how well a company’s products, services, and overall customer experience meet customer expectations

Question 4

Market Share

Answer 4

Business goal to increase the percentage of a market that a company controls for its products and services. Market share is a key indicator of a company’s success and profitability

Question 5

Corporate Social Responsiiblity

Answer 5

They might take responsibility for consequences on the environment and aim to maximise social welfare. Firms might try and perform more ethically

Question 5

Cost efficiency

Answer 5

Improve the organisation’s bottom line by decreasing t costs and improving efficiencies across the board

Question 6

Market Share

Answer 6

Business goal to increase the percentage of a market that a company controls for its products and services. Market share is a key indicator of a company’s success and profitability

Question 7

Satisficing

Answer 7

When a firm is earning just enough profits to keep its shareholders happy

Question 8

Survival

Answer 8

Firms might aim to sell as much as possible to keep their market position, even if it is at a loss in the short run

Question 9

Employee Satisfaction

Answer 9

When employees are happy, they are more likely to be productive and do a good job. It also increases loyalty towards the employer, so the employee is less likely to leave
the job