chapter 5 Flashcards
define business objectives
business objectives are the aims or targets that a business works towards
define profit
the total income of a business less than total costs
define market share
the percentage of total market sales held by one brand or business
define social enterprise
social enterprise has social objectives as well as an aim to make a profit to reinvest back into the business
what are the three objectives of social enterprise
social , environmental and financial
what is a stakeholder
a stakeholder is any person or group with a direct interest int he performance and activities of a business
what are the main feature of owners
- they put capital in to set up and expand the business
- they will take a share of the profits if the business succeeds
- if the business does not attract enough customers, they may lose the money they invested
- they are risk takers
what are the objectives for the owner
- share of profits so that they gain a rate of return on the money put into the business
- growth of the business so that the value of their investment increases
what are the main features of workers
- they are employed by the business
- they have to follow instructions of managers and may need training to do their work effectively
- they need to be employed on full or part time contracts and on a temporary or permanent basis
- if there is not enough work for the workers, some may be made redundant and told to leave the business
what are the objectives for the worker
- regular payment for their work
- contract of employment
- job security- workers do not want to look fro new jobs frequently
- jobs that give satisfaction and provides motivation
what are the main features of managers
- they are also employees of the business and control the work for other workers
- they take important decisions
- their successful decisions could lead to business expanding
- if they make poor decisions, the business could fail
what are the objectives for the managers
- high salaries because of the important work they do
- job security- this depends on how successful they are
- growth of the business so that managers can control a bigger and better known business. This gives them more status power
what are the main features of customers
- they are important to every business. They buy the goods that the business produces or the services that the business provides
- without enough customers, a business will make losses and will eventually fail
- the most successful businesses often find out what consumers want before making the goods or providing services - this is called market research
what are the objectives for the customers
- safe and reliable products
- value for money
- well designed products of good quality
- reliability of service and maintenance
what are the main features of the government
- it is responsible for the economy of the country
- it passes laws to protect workers and consumers
what are the objectives for the government
- wants businesses to succeed in its country. Successful businesses will employ workers, pay taxes and increase the country’s output
- expects all firms to stay within the law - law affects the business activity
what are the main features of the whole community
- the community is greatly affected by the business economy.
- businesses also create jobs and allow workers to raise their living standards. Many products are beneficial to the community such as medicines or public community
what are the objectives for the whole community
- jobs for the working population
-production that does not damage the environment - safe products that are socially responsible
what are the main features of banks
- they provide finance for the business’ operations
what are the objectives for the banks
- expect the business to be able to pay interest and repay capital rent- business must remain liquid
