Theme 1 Topic 2 - Business Objectives

Question 1

Define Objectives

Answer 1

A specific and measurable target for the future

Question 2

Define Aim

Answer 2

A vague statement or general goal

Question 3

Define Strategy

Answer 3

The plan used to achieve the business objectives

Question 4

Objectives need to be…

Answer 4

SMART

Question 5

What does SMART stand for?

Answer 5

Specific, Measurable, Achievable, Realistic, Timebound

Question 6

Define Profit Maximisation

Answer 6

To achieve the maximum levels of profit possible

Question 7

Define Survival

Answer 7

To ensure the company will continue to trade in the future e.g. by breaking even or having adequate cash flow

Question 8

Define Market Share

Answer 8

% of total sales achieved by a business in comparison to the size of the market

Question 9

Define Cost Efficiency

Answer 9

Minimising costs to remain competitive

Question 10

Define Employee Welfare

Answer 10

Trying to keep employees happy at all times

Question 11

Define Customer Satisfaction

Answer 11

Keeping customers happy

Question 12

Define Social Objectives

Answer 12

To help society in some way e.g. raising funds for charity or using recycled material to minimise harm to the environment