→business objectives including to make a profit, to increase market share to fulfil a market and/or social need and to meet shareholder expectations

Question 1

what is a business objective?

Answer 1

a business objective is the desired outcome or specific result that a business intends to achieve

Question 2

making a profit

Answer 2

Making a profit is an objective that is central to most businesses. Profit is what is left after business expenses have been deducted from money earned from revenue(sales)

Question 3

what is market share

Answer 3

market share is a business’s proportion of total sales in a market or an industry.

This is easy to visualise using a pie chart that shows the percentage of sales the business has in relation to all its competitors

Question 4

to fulfil a market need

Answer 4

fluffing a market need is to provide a good or service that is not otherwise available to a market

or

filling a gap in the market

Question 5

to fulfil a social need

Answer 5

Sometimes a business will aim to fulfil a social need. This objective involves the production and selling of goods and services for the purpose of making the world a better place. A business with such a focus may generate an income, but its primary purpose is the common good.

Question 6

to meet shareholder expectation

Answer 6

Shareholders expect to make a return on their investment. They expect the business that they have invested in to make a profit, as they receive a proportion of the profits called dividends. They also make a capital gain if the value of a company’s shares increases. If the part of the profit gained by the company is returned to shareholders or the value of a company’s shares increases, then shareholders will have their expectations met.