common business objectives Flashcards
1
Q
what are the 6 objectives
A
profit
growth
cash flow
survival
social
ethical
2
Q
explain profit and profit maximisation
A
profit = revenue - total costs
profit max satisfies shareholder dividends
3
Q
growth
A
trying to increase market share
market share allows for economies of scale
4
Q
cash flow
A
the money coming in and out of a business
important to pay debts on time.
5
Q
survival
A
making sure a business is able to run ,
this is most important for new businesses
6
Q
what does social objectives involve
A
providing employment for people
making the locals happy
7
Q
ethical
A
environmental affects and how the business affects people emotionally
