Chapter 1.3 Test.

Question 1

What are the three broad types of objectives?

Answer 1

Financial, social and personal objectives.

Question 2

Increase Sales.

Answer 2

A business can do this by lowering prices, through clever advertising, providing better service or creating more innovative products.

Question 3

Increase market share.

Answer 3

A business can increase market share by developing an extensive product range or using many different brand names.

Question 4

Expand the business.

Answer 4

A business can achieve growth by opening more outlets, employing more staff, starting new projects, introducing new products, through merging with another company or through purchasing another company.

Question 5

Community service.

Answer 5

Businesses sponsor a wide range of community events, promotions and programs and financially support many educational, cultural, sporting and welfare activities.

Question 6

Provision of employment.

Answer 6

Many small businesses look at the continuity of their business, sometimes employing family members who are unemployed.

Question 7

Social justice.

Answer 7

A business may be concerned for social justice so they adopt a set of policies to ensure employees and other community members are treated equally and fairly.

Question 8

Ecological sustainability.

Answer 8

Businesses have a responsibility to look after the environment, so some business owners adopt policies of conservation, recycling and restoration so the Earth can sustain itself.