Business objectives in the private sector

Question 1

What are the 8 common corporate objectives

Answer 1

Profit maximisation, Profit satisficing, Growth, Increasing market share, Survival, Corporate social responsibility, maximising short- term sales revenue, maximising shareholder value

Question 2

What is profit satisficing?

Answer 2

Aiming to achieve enough profit to make owners happy but not trying to maximise.
This is common in small businesses with owners who just want to live comfortably

Question 3

What is corporate social responsibility?

Answer 3

this concept applies to those businesses that consider the interests of society by
taking responsibility for the impact of their decisions and activities on customers, employees, communities and the
environment

Question 4

Why would a business aim for CSR

Answer 4

Gives them better publicity but it can be expensive.

Forced to by govt. regulation