GCSE OCR Business Studies A292 - Business objectives & Stakeholders

Question 1

Business objectives are…

Answer 1

What the business is trying to achieve

Question 2

A Mission Statement contains what?

Answer 2

A brief summary of the main objectives a business or organisation has

Question 3

Private sector business main objectives is usual to?

Answer 3

Make a profit

Question 4

A Public sector organisation will normally have the main objective of?

Answer 4

Providing a service (like the NHS)
or
Operating within a budget

Question 5

Stakeholders are?

Answer 5

Anyone with an interest in a business

Question 6

The term given to when a business makes enough profit to enable it to meet its needs, it may not make as much profit as possible

Answer 6

Profit Satisficing

Question 7

The payment made yearly to Shareholders as a return on their investment

Answer 7

Dividend

Question 8

List at least 4 examples of stakeholder groups

Answer 8

Owners
Managers
Workers
Government
Local community
Suppliers
Customers
Competitors
Pressure groups

Question 9

Growth and Profit can be 2 business objectives that conflict, why?

Answer 9

If growth is seen as a business’ main objective, this can mean that profit is reduced for a period of time as finance is used to fund growth.
If profit falls Shareholders will receive lower dividends, however,
in the longer term, the growth should lead to increased profits.