Unit 1: Chapter 5

Question 1

What is an objective?

Answer 1

an aim or target a business works towards

Question 2

Why do we have objectives?

Answer 2

they give managers/workers clear targets to work towards, can help decision making and can judge success by comparing completion of objectives

Question 3

What are some examples of objectives?

Answer 3

generate business survival, profit maximisation, returns to shareholders, growth of the business, increase market share, service to the community

Question 4

What is a social enterprise?

Answer 4

a business that’s objectives are to protect the environment and help disadvantages people. they aren’t profit driven but instead to give service

Question 5

What is a stakeholder?

Answer 5

someone with direct interest in the growth of your business (can be internal or external)

Question 6

What are the objectives of stakeholders?

Answer 6

internal: growth of business + maximise profits

external: regular payments (eg. dividends)