1.1 Business Objectives Flashcards
(15 cards)
What is a business objective?
A specific, measurable target a business sets to achieve its overall aims.
How do business aims differ from objectives?
Aims are general long-term goals, while objectives are specific steps to achieve those aims.
Name four common financial objectives for a business.
Survival, profit, sales, and financial security.
What does ‘survival’ mean as a business objective?
Ensuring the business continues to operate, especially during challenging times.
Define ‘profit’ as a business objective.
Earning more revenue than expenses to provide returns to owners/shareholders.
What is meant by ‘sales’ as a business objective?
Increasing the volume or value of products/services sold.
Explain ‘financial security’ in business terms.
Achieving a stable financial position to safeguard against future uncertainties.
List three non-financial objectives a business might have.
Social objectives, personal satisfaction, and independence.
What are social objectives in business?
Goals aimed at benefiting society, such as environmental sustainability or community support.
How does ‘personal satisfaction’ serve as a business objective?
Achieving personal goals or fulfillment through business success.
Why might ‘independence’ be a business objective?
To have control over decisions and operations without external interference.
How can business objectives vary between companies?
Based on factors like size, ownership, market conditions, and stakeholder expectations.
Why is setting clear business objectives important?
They provide direction, facilitate planning, and help measure progress.
How do objectives assist in business planning?
They help allocate resources effectively and set priorities.
What role do objectives play in performance evaluation?
They serve as benchmarks to assess success and identify areas for improvement.
