Unit 5

Question 1

Business objective?

Answer 1

A statement of a specific target to be achieved.

Question 2

Market share?

Answer 2

Revenue of a business as a percentage of total market revenue.

Question 3

Corporate and social responsibility?

Answer 3

Business taking responsibility for the impact their activities may be having on society.

Question 4

Pressure group?

Answer 4

A group of likeminded people that puts pressure on businesses and the government to attain certain objectives.

Question 5

Social enterprise?

Answer 5

A business with social objectives that invests some profits into benefiting society.

Question 6

Stakeholder?

Answer 6

An individual or group that has an interest in a business because they are affected by its activities and decisions.

Question 7

What are the needs for business objectives?

Answer 7

1) Specific.
2) Measurable.
3) Achievable and agreed.
4) Realistic and Relevant.
5) Time specific.

Question 8

Reasons for corporate and social responsibility?

Answer 8

1) Activity of pressure groups.
2) Media creating great awareness of social ethical and environmental issues.
3) The role of trade unions and other employee representative groups.
4) The role of governments as the pass at local, national and international levels.

Question 9

How many main types of stakeholders are there?

Answer 9

1) Internal.
2) External.

Question 10

How many types of internal stakeholders?

Answer 10

1) Owners / Shareholders.
2) Managers.
3) Employees.

Question 11

Explain objective of Owners / shareholders.

Answer 11

1) Receive high dividends for their investment.
2) To benefit in increase in share value.

Question 12

Explain objectives of managers.

Answer 12

1) To have job satisfaction and status.
2) Receive increased salary and bonuses.

Question 13

Explain objectives of employees.

Answer 13

1) To have job security.
2) To receive fair wage that reflects contribution to the business’s success.

Question 14

How many types of external stakeholders?

Answer 14

1) Lenders.
2) Suppliers.
3) Customers.
4) Government.
5) Local community.

Question 15

Explain objectives of lenders.

Answer 15

1) Receive payment when it is due.
2) To have borrowing repaid.

Question 16

Explain objectives of suppliers.

Answer 16

1) To receive prompt payment for goods supplied on credit.
2) To treated fairly and not forced to reduce prices by businesses with strong buying power.

Question 17

Explain objectives of customers.

Answer 17

1) Receive quality goods.
2) To be charged fair price which gives value for money.

Question 18

Explain objectives of government.

Answer 18

1) To have tax paid at correct times in correct amounts.
2) To have minimal spending on unemployment benefits.

Question 19

Explain objectives of local community.

Answer 19

1) Receive benefits for local economy such as: employment, subsidizing of community facilities, etc.

Question 20

What are the business objectives in a business?

Answer 20

1) Survival.
2) Profit.
3) Growth.
4) Market value.
5) Corporate and social responsibility.

Question 21

Explain business objective: survival.

Answer 21

To make sure the business does not fail within the first few years.

Question 22

Explain business objective: Profit.

Answer 22

Output revenue must be more than production costs.

Question 23

Explain business objective: Market share.

Answer 23

Growth of a business gives it a bigger share of the market.

Question 24

Explain business objective: Corporate and social responsibility.

Answer 24

Taking part in social and ethical activities means that there will be more good publicity for the business.

Question 25

What is the role of stakeholder group: Owners and shareholders.

Answer 25

Interested in the performance of a business as they earn profit from their investments.

Question 26

What is the role of stakeholder group: Managers.

Answer 26

Responsible for performance of a business. If the business performs nicely, they may get bonuses or get a promotion.

Question 27

What is the role of stakeholder group: Employees.

Answer 27

If employees keep the business running they will be able to maintain their job and receive better pay.

Question 28

What is the role of stakeholder group: Lenders.

Answer 28

Lenders would like to know if the business can provide back the loans provided to the business.

Question 29

What is the role of stakeholder group: Suppliers?

Answer 29

They want to know if the business is successful in sales, as more sales are made, more raw materials are bought by the business. It is also important to understand if the business can pay back short term loans.

Question 30

What is the role of stakeholder group: Customer.

Answer 30

They want to understand if the business will exist in the future.

Question 31

What is the role of stakeholder group: Government.

Answer 31

Government taxes the business depending on how much the business earns.

Question 32

What is the role of stakeholder group: Local community.

Answer 32

The business may produce employment and also help the economy with funds to the local community.

Question 33

What are the objectives of public and private sector businesses?

Answer 33

1) Accessible.
2) Affordable.
3) Open to all.