Chapter 5 Flashcards
Business objectives
The aims or targets that a business works towards.
Profit
Total income (revenue) of a business less total costs.
Market share
The proportion (%) of total market sales held by one brand or business
Sales of business / total market sales x 100
Social enterprise
An organisation with profit, environmental and social objectives.
Stakeholder
Any person or group with a direct interest in the performance and activities of a business,
Importance of business objectives
- Act as motivator
- Helps with decision-making
- Makes the business work over a goal
- Acts as a measure of achievement
Examples of business objectives can be
- Business survival
- Profit
- Growth
- Market share
What is the main objective of a social enterprise?
Provide service to society
Internal stakeholders
- Owners
- Workers
- Managers
Examples of external stakeholders
- Consumers
- Government
- Community
- Bank
Private sector objectives
Business survival
profit
growth
returns to shareholders
market share
return to society
Public sector objectives
Provide service to the community
increase living standards
Increase jobs to lower unemployment
