Chapter 2- Business objectives Flashcards
1
Q
Entrepreneur is…
A
A person that starts up a business, takes risks and takes decisions about what to produce and how and works out how to market the product
2
Q
Business objectives (3 main ones)
A
Profit maximisation
Sales maximisation
Satisficing
3
Q
What is satisficing?
A
Achieving the minimally acceptable result. Means reaching a good enough profit level, without maximising
4
Q
Objective is…
A
The results a business wants to achieve as they run and grow the business
5
Q
Other business objectives
A
Market share Survival ROI Cost efficiency Social objectives Sustainability Ethical business Customer satisfaction
6
Q
Market share is..
A
The proportion of a specific market that is supplied by one business. It’s calculated by the total sales by the business as a percentage of total sales in the market.
