business objectives

Question 1

define business objective

Answer 1

a goal that a business wishes to achieve within a specified period of time

Question 2

name the six business objectives

Answer 2

• make a profit
• increase market share
• fulfill a market need
  -fulfill a social need
• meet shareholder expectations
• improve efficiency
• improve effectiveness

Question 3

increase market share

Answer 3

increase the proportion of sales that need or product has compared to the total sales in the industry, expressed as a percentage

Question 4

fulfill a market need

Answer 4

business aims to provide goods or services that fill a gap in the market and therefore meet customer demand

Question 5

fulfill a social need

Answer 5

social objectives relate to the role of the business in the community and how they can improve the lives of others or the environment
- social objectives go beyond financial objectives and revolve around being a ‘good citizen’

Question 6

meet shareholder expectations

Answer 6

shareholders expect that the business will make a profit and for any shares purchased to increase in value and to receive dividends

Question 7

improve efficiency

Answer 7

how well a business has used its resources to achieve its stated objectives

Question 8

improve effectiveness

Answer 8

the ability of a business to achieve its stated objectives