BUSINESS OBJECTIVES

• What are objectives?

  goals or targets set by a business
• What are executives?

  managers in an organisation or company who help make important decisions
• What does diversify mean?

  if a business, company or country diversifies, it increases the range of goods or services it produces
• Why is it important to have clear objectives?

  • employees need something to work towards. objectives are motivating
  • without them owners might not have the motivation needed to keep the business going
  • they help to decide where to take a business and what steps are necessary to get there
  • it makes it easier to assess the performance of the business
• Why are financial objectives important in the private sector?

  because most business owners in the private sector want to make money
• What are the main financial aims and objectives?

  • survival
  • profit
  • sales
  • increased market share
  • financial security
• What is financial return?

  money returning to the business
• What is profit maximisation?

  making as much profit as possible in a given time period
• What are shareholders?

  owners of limited companies
• What are dividends?

  a share of the profit paid to shareholders in a company
• What is profit satisficing?

  making enough profit to satisfy the business owner(s)
• What are non-financial objectives?

  objectives that are not connected with money
• What are some examples of non-financial objectives?

  • social objectives
  • personal satisfaction
  • challenge
  • independence and control
• Why might objectives change as a business evolves?

  • market conditions
  • technology
  • performance
  • legislation
  • internal reasons
• What is a large business?

  a business that employs more than 250 people
• What is a small business?

  a business that employs fewer than 50 people
• What is revenue?


  the total amount of money brought in by a company's operations
• What is automation?

  the use of computers and machines instead of people to do a job
• What are economies of scale?

  financial advantages, such as falling average costs, of producing something in large quantities