Unit 1 Topic 2 Flashcards
(19 cards)
Financial return
Monetary return
Shareholders
Owners of limited companies
Dividends
Share of the profit paid to shareholders in a company
Profit satisficing
Making enough profit it satisfy the needs of the business owner
What is financial security
Some business owners do not aim for profit maximization. Instead, they might aim to make enough profit to give them financial security. This is sometimes called profit satisficing.
Negotiation
Official discussions between the representatives or opposing groups who are trying to reach an agreement, especially in business or politics
What is the outcome?
The outcome is the result of the action
What does it mean to evolve?
To develop and change gradually over a long period of time
What is legislation
It is law or sets of laws
What is a business that employs 0 people?
It is a business that does not have any employees.
What is a business that employs people?
It is a business that has one or more employees.
What are the main reasons for a business changing its objectives?
The reasons are mainly due to external factors beyond the control of businesses.
What might cause a business to change its objectives for internal reasons?
A change in ownership or a change in the senior management team.
What might new owners want to achieve?
New owners might want to maximise profits to pay higher dividends to shareholders.
How do the objectives of large and small businesses differ?
Small businesses may prioritize personal satisfaction and independence, while large businesses may focus on maximizing profits.
What is a non-financial business objective?
Independence and control.
What is a financial business objective?
Sales growth.
What might cause business objectives to change over time?
Technological development.
What is likely to be an objective of a public sector organization?
Survival.
