Unit 1.3 - Business aims and objectives

Question 1

Name the different business objectives (7)

Answer 1

Survival 
Maximise profit
Growth 
Increase shareholder value
Increase market share
Achieve customer satisfaction
Social and ethical objectives

Question 2

Difference between an aim and an objective

Answer 2

An aim is a long term goal that a business wants to achieve where an objective is steps that help to meet an aim

Question 3

Influences on type of objectives (3)

Answer 3

Business size
Number of competitors
Type of business - not-for-profit will differ greatly

Question 4

Changes to objectives (2)

Answer 4

Business size changes

External environment changes - laws, economy, technology, environmental expectations

Question 5

Businesses set objectives (4)

Answer 5

Help with decision making and planning
Helps investors understand the direction the business is going
Provides a target
Motivates the stakeholders impacted by the business