Lesson 2- Business objectives Flashcards
Define objectives
Goals or targets that a business plans to achieve in order to achieve their aims
What is the SMART criteria?
Specific- Stating clearly what is trying to be achieved
Measurable- can be measured quantitively
Agreed- have the approval of everyone involved
Realistic- able to be achieved with the available resources
Time bound- have a stated time by which they should be achieved.
Define market share
Percentage sales a business has out of the total sales in the industry
What are 8 common objectives of businesses?
- Survival
2.Profit maximization - Sales maximization
- Increase market share
- Cost efficiency
- Employee welfare
7.Customer satisfaction - Social objectives
Four financial objectives
Profit
Survival
Maximize sales
Maximize market share
Three non financial objectives
Social enterprises
Personal satisfaction
Independence
Large Vs small firms
A small firm is one that employs less than 50 employees and a large firm is one which has a workforce of over 250 employees
Define enterprenuer
An entrepreneur is a person who organizes factors of production such as people, finance, land and equipment in a business in order to produce a good or service whilst acknowledging the element of risk in order to make a profit.
Define incorporated business
A business that has a separate legal identity from its owners. Very often they take the form of limited liability companies.
Define unincorporated business
Businesses where the owner and the business are considered to be both one and the same. Very often small firms such as sole traders fall into this category.
