Financial aims and objectives

• What is the purpose of aims and objectives in business?

  To give goals or targets to achieve
• How do financial aims and objectives differ from non-financial ones?

  Financial aims relate to money, non-financial do not
• What are the key financial aims and objectives for businesses?

  • Business survival
  • Profit
  • Sales
  • Market share
  • Financial security
• What does business survival refer to?

  Keeping the business operating for a certain time
• What is profit in a business context?

  Money left after costs are deducted from revenue
• When do businesses typically aim to make a profit?

  Within the first two years
• What does sales refer to in a business?

  Amount of product or service sold
• Why do businesses set sales targets?

  To give a purpose to employees' daily activities
• What is market share?

  Percentage of the market occupied by a business
• Give an example of a market share objective.

  To have 5% share of fast food market
• What does financial security mean for a business?

  Ability to pay off costs and survive
• What is the role of an entrepreneur in a business?

  A calculated risk-taker for financial gain
• How many financial aims or objectives might an entrepreneur have?

  More than one
• What are the differences between financial and non-financial objectives?

  • Financial objectives are linked to money
  • Non-financial objectives focus on other aspects like customer satisfaction
  • Financial objectives often have measurable targets
  • Non-financial objectives may be qualitative