Business Aims & Objectives Flashcards

All 10 cards in this deck

What is the difference between a business aim and a business objective?

Aims are overall long-term targets; objectives are the short-term steps taken to meet those aims.

What is meant by the objective of business survival?

Aiming to keep operating for a certain period of time, commonly the first year.

What is meant by profit maximisation as a business objective?

Aiming to make the largest possible profit, usually pursued once the business has reached break-even.

What is meant by growth as a business objective?

Increasing the number of employees, products sold or sales income — domestically in the same country or internationally in other countries.

What is market share?

The percentage of the total market that a business occupies within its industry.

What is meant by customer satisfaction as a business objective?

A non-financial objective measuring how happy customers are with the products or services provided by the firm.

What are social and ethical objectives?

Non-financial objectives linked to operating in an environmentally friendly or ethical way, or meeting a social need.

What is meant by shareholder value as a business objective?

Increasing the value of the company's shares in order to keep shareholders happy.

What is the difference between financial and non-financial objectives?

Financial objectives relate to money; non-financial objectives relate to anything other than making money.
e.g. profit is financial, customer satisfaction is non-financial.

True or false? Profit maximisation is the usual objective of a business that has not yet broken even.

False. Such a business usually aims for survival first; profit maximisation is pursued once break-even is reached.