Chapter 21: Business Objectives

Question 1

What is a business objective?

Answer 1

Objectives are statements of specific outcomes that are to be achieved

Question 2

What does S.M.A.R.T stand for?

Answer 2

Specific 
Measurable
Agreed
Realistic
Time specific

Question 3

What is profit maximisation?

Answer 3

The dominant goal of a typical firm. This means selling a quantity of a good or service, or fixing a price, where total revenue (TR) is at its greatest above total cost (TC).

Question 4

State 3 of the typical objectives of a firm

Answer 4

Sales maximisation: Increase the sales

Market share: if a business can get a larger makret share it can increase revenue and rais etheir profile

Cost efficiency: how to reduce their costs