business theme 1

Question 1

business objectives 1 (

Answer 1

• aims are general but objectives are specific

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Question 2

financial aims and objectives 5

Answer 2

-survival ( when a business can continue to exist

• profit( to achieve a surplus of revenue over costs

-sales( to expand through customers and branches tthus increasing sales

• market share ( to increase the percentage of the total market that one brand or business owns

-financial security( ensuring its cash flow is positive so it can pay its bills

Question 3

non-financial aims and objectives 3

Answer 3

-social objectives : to do the morally correct way that is beneficial to society

• challenge : individuals might want to test themselves as running a business is a test of character

-independence and control : the owner of an organization has complete control of decision making. this allows them to make decisions on location, product, pricing strategies and their employees.

Question 4

why business objectives differ

Answer 4

• size of the business : a small business may be happy to profit satisfice to keep a work life balance for its owners with no wish to grow. a big business may want to achieve further growth or increase market share. if the domestic market is saturated it may look to expand abroad.
• level of competition faced :in a highly competitive market a business may struggle to survive. in a market where there are a limired number of businesses they may all want to gain a competitive advantage and market share

-type of business a company may have an objective to maximize profits to increase shareholder value a not for profit business will have social and ethical objectives.