Unit 3, AOS 1, Dp 2

Question 1

Business objectives

Answer 1

goals a business intends to achieve

Question 2

Profit

Answer 2

total revenue earned minus total expenses incurred

Question 3

To make a profit

Answer 3

to make a financial gain

Question 4

Market share

Answer 4

a business’s percentage of total sales within an industry

Question 5

To increase market share

Answer 5

To increase a businesses number of sales, aim to increase as it is a reflection of how competitive they are

Question 6

Dividens

Answer 6

regular sums of money paid out to shareholders from a business’s profit

Question 7

Capital gain

Answer 7

an increase in the value of a share, meaning an investor can sell their shares at a higher price than what they originally purchased them for

Question 8

To meet shareholder expectations

Answer 8

shareholders expect to make a return on their investment through dividends and capital gain

Question 9

To fulfil a market need

Answer 9

when a business fills a gap in the market, which involves addressing customer needs which are currently unmet or underrepresented by other businesses in the same industry

Question 10

To filfil a social need

Answer 10

Improving society and the environment through business activities

Question 11

Efficiency

Answer 11

how productively a business uses its resources when producing a good or service

Question 12

To improve efficiency

Answer 12

Getting the most out of resources

Question 13

Effectiveness

Answer 13

the extent to which a business achieves its stated objectives

Question 14

Effectiveness v Efficiency

Answer 14

efficiency is concerned with how well resources are used to achieve objectives; such as how well you are using time, employees, etc. Whereas effectiveness is the degree to which a business has achieves its stated objectives; for example whether the business has achieved its profit