Business Start-ups Flashcards
1
Q
Profit Maximisation
A
Where the target is to receive the most amount of profit .
2
Q
Survival
A
May be a target for the first few years of a business, especially if there is a crisis in the development stages.
3
Q
Sales Growth
A
Where owners believe that sheer quantity of sales is the best chance for survival.
4
Q
Social objectives
A
For a social enterprise it may be to correct one os societies problems, although may affect break-even or the finances.
5
Q
Why set objectives
A
Direction
Target to derive plans from
Inform leaders/investors about the aims
Guideline to assess the achievements of the business
6
Q
SMART
A
Specific Measurable Agreed Realistic Time specific
7
Q
Risks
A
Lack of business and management skills Lack of knowledge of legal requirements Competition Increased taxes or interest rates Changes in tastes Technology
8
Q
Business failure
A
Insufficient Capital (money) Poor management skills Poor location Lack of planning Over-expansion External factors
