BUSS3 Revision Guide Questions Flashcards
What is the purpose of functional objectives?
They will help each department achieve their corporate objectives by contributing towards the corporate objectives.
What’s the difference between corporate objectives and functional objectives?
Corporate objectives are objectives for the whole business. Functional objectives are the objectives of each department and are more detailed and specific to each department.
What are corporate strategies?
Corporate strategies are developed to achieve corporate objectives and can involve several departments.
What does SMART stand for?
Specific Measurable Agreed Realistic Timely
What is a financial objective?
A financial goal that a business wants to achieve.
List three wats that businesses can minimise their costs.
- Producing in large quantities - benefit from economies of scale
- Switching to cheaper suppliers
- Cut staffing levels or take on less experienced staff who don’t need to be paid as much
Why might cutting costs not lead to an increase in profits?
Because the quality of the product may have been reduced. Which might cause the company’s reputation to suffer and sales to fall.
Why might a business look at its financial data over time?
Because the business can see whether it is performing better or worse than previously and to spot any trends in the data.
Which two figures on a balance sheet are always equal?
Net assets and total equity.
