Business Aims and Objectives

Question 1

what are examples of business objectives

Answer 1

survival, growth, profit, providing a service

Question 2

what is survival

Answer 2

a business being able to continue to operate in the long term, perhaps without making a profit in the short term

Question 3

what is profit

Answer 3

a reward to owners for taking a risk by investing money in a business, many businesses want to maximise profits

Question 4

what is growth

Answer 4

an increase in sales or market share and a way of increasing profits

Question 5

what is providing a service

Answer 5

giving customers a good service to make a profit from returning customers and new customers

Question 6

why do businesses evolve

Answer 6

• different stage of development
• the owners have different motivations
• there are different market conditions
• there are different economic conditions

Question 7

which businesses have survival objectives

Answer 7

• a new business trying to become established by gaining new customers and making profit in the long term
• a business during a downturn in economic activity or when the market is competititive

Question 8

which businesses have profit objectives

Answer 8

• a new business wanting minimum profits to survive
• an established business wanting to earn profits to reinvest and expand
• good profits encourage new investors to put money in the business, helping growth

Question 9

which businesses have growth objectives

Answer 9

• a new business wanting to increase sales or market share to help survive
• an established business wanting to increase market share, reduce competition and increase profits

Question 10

which businesses have providing services objectives

Answer 10

• a business wanting a good reputation to attract new customers and retain existing customers