Business Aims & Objectives Flashcards

All 13 cards in this deck

What is a business aim?

The overall target or goal that a business works towards.

What is a business objective?

A specific step or target a business needs to achieve in order to meet its overall aim.

What does the acronym SMART stand for in SMART objectives?

Specific, Measurable, Achievable, Realistic and Time-bound.

What are financial aims and objectives?

Goals linked to money — either keeping the business able to run or helping it make a profit.

Name three financial aims or objectives a business may have when starting up.

Any three of: survival, profit, sales, market share, financial security.

Why is survival usually the main financial aim of a new business?

A new business has start-up costs and few regular customers at first, so it must cover its costs and keep a positive cash flow before it can aim for profit.

What are non-financial aims and objectives?

Goals linked to something other than making money, usually the personal reasons for setting up the business.

Name three non-financial aims or objectives of an entrepreneur starting up.

Any three of: social objectives, personal satisfaction, challenge, independence, control.

What is meant by independence as a non-financial aim?

The entrepreneur can be their own boss and make their own decisions instead of being told what to do as an employee.

Give two reasons why aims and objectives differ between businesses.

Any two of: the sector they operate in; their size and scale (e.g. a new business aims to survive, an established one aims for profit); the level of competition; the owner's personal reasons for running the business.

True or false? Personal satisfaction is a financial objective.

False. It is a non-financial objective.

What is meant by a social objective?

An aim to benefit other people or the community rather than to make money, e.g. creating local jobs or helping a good cause.

What is meant by financial security as an aim?

The owner wants the business to earn enough to give them a reliable income and money to fall back on.