Read the information below about a family manufacturer of reusable lunch boxes. It currently sells mainly to schools. The owners want the business to be kno...
Question 1 Report
Read the information below about a family manufacturer of reusable lunch boxes. It currently sells mainly to schools. The owners want the business to be known for durable products and have decided not to use cheaper plastic, even though this could reduce costs. A buyer has asked the business to state its aims before discussing a long-term supply contract.
(a) What is meant by a business aim? [1]
(b) Explain one reason why the owners may choose product quality as an aim. [2]
(c) Which one of the following is a financial objective?
A Reduce damaged items returned by customers.
B Achieve a net profit of $30 000.
C Use recycled packaging on every product.
D Train all manufacturing staff. [1]
Answer Details
(a) A business aim is the broad, long-term purpose or overall goal of a business. [1]
(b) Making durable, high-quality lunch boxes can improve customer satisfaction and the business's reputation. [1] Satisfied customers may buy again, recommend the product, or accept a higher price, helping the business in the long term. [1]
(c) Achieving a net profit of \(\$30\,000\) is a financial objective. [1] Profit is measured in money; reducing returns, using recycled packaging, and training staff are non-financial targets.
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