1.3.1 Business aims and objectives

Question 1

What are aims?

Answer 1

Goals for a business, what they want to achieve in the long term

Question 2

What are objectives?

Answer 2

Short-term steps a business takes to achieve its aims

Question 3

What does SMART stand for?

Answer 3

Specific
Measurable
Achievable
Realistic
Timely

Question 4

Why does a business set aims and objectives?

Answer 4

Allow the business to share its direction with staff so they know what to focus on and are motivated by it
Enable a business to measure its performance
Help a business plan for its future

Question 5

What are aims and objectives for private sector businesses?

Answer 5

Maximise profit
Maximise market share
Expand the business

Question 6

What is a private sector business?

Answer 6

Privately owned

Question 7

What are the aims and objectives for public sector businesses?

Answer 7

Delivering a service to customers
Keeping costs to a minimum

Question 8

What is a public sector business?

Answer 8

Run for the government for the benefit of society (school)

Question 9

What do not-for-profit business aim for?

Answer 9

Fundraise or collect donations for a specific cause

Question 10

What techniques do social enterprises use?

Answer 10

Sell products for a profit which is invested to benefit society/environment, rather than being paid out to shareholders

Question 11

What are financial aim and objectives?

Answer 11

Survival
Maximise profit
Increase volume of sales
Increase their market share
Financial security
Personal wealth

Question 12

What are non-financial aims and objectives?

Answer 12

Social objectives (aim to eliminate poverty)
Personal satisfaction
Challenges
Independence
More control over work/life balance