Business Objectives
Overview
Every business begins with a purpose, but what that purpose looks like depends on who owns the business, how large it is, and what stage of its life it has reached. Some businesses chase rapid growth and maximum profit, while others exist to serve a community or give the founder a lifestyle they enjoy.
In this lesson you will explore the financial and non-financial objectives that businesses set, discover why a start-up's goals look very different from those of a multinational, and examine the forces that push businesses to rethink their aims as the world around them changes.
Objectives
- Understand the financial aims and objectives of businesses: survival, profit, sales, market share, financial security
- Understand the non-financial aims and objectives of businesses: social objectives, personal satisfaction, challenge, independence and control
- Understand why business aims and objectives change as businesses evolve, in response to market conditions, technology, performance, legislation and internal reasons
Mind map
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Flashcards
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Lesson Note
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Lesson Evaluation
Congratulations on completing the lesson on Business Objectives. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.
You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.
Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.
- Which of the following is a financial objective? A) Personal satisfaction B) Social responsibility C) Market share D) Independence Answer: C
- Profit satisficing means: A) Making the maximum possible profit B) Making enough profit to satisfy the owner C) Making no profit at all D) Donating all profit to charity Answer: B
- Which factor is most likely to cause a business to change its objectives from growth to survival? A) A rise in consumer spending B) A new competitor entering the market C) An increase in profits D) A reduction in taxes Answer: B
- A social enterprise is most likely to prioritise which objective? A) Profit maximisation B) Market share C) Social objectives D) Financial security Answer: C
- Which of the following is an internal reason for changing business objectives? A) New government legislation B) A change in ownership C) A recession in the economy D) A new competitor Answer: B
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