1.4 Business Aims and Objectives

• Business aims are the overall long-term goals or purposes that a business wants to achieve
• Ensuring the business continues to operate is the aim of survival
• Order the examples of business objectives from short-term to long-term

  1️⃣ Reduce costs by 5% within 6 months

  2️⃣ Increase sales by 10% in the next year

  3️⃣ Expand into a new market within 2 years
• Setting clear, achievable business objectives is crucial for a business to work towards its overarching aims.


  True
• Which business aim involves earning the highest possible profits?

  Profit maximization
• Social responsibility involves considering the impact on society and the environment
• Business objectives are the specific, measurable, and time-bound targets to achieve overall business aims
• What is a key difference between business aims and objectives?

  Aims are broad, objectives are specific
• Social responsibility is a common business aim


  True
• Growth as a business aim refers to expanding the size and scale of the business


  True
• What is an example of a common business objective related to customer satisfaction?

  Improve customer satisfaction rating to 90%
• Business aims provide the overall direction and vision for a business, guiding its long-term strategy
• Business aims are broad, long-term goals, while business objectives are concrete, short-term steps.


  True
• Why is it crucial for a business to set clear, achievable objectives?

  To work towards aims
• Business aims guide long-term strategy and decision-making.


  True
• SMART objectives ensure that business goals are realistic and aligned with overall strategy.


  True
• Growth as a business aim involves increasing the size and scale of the business.

  True
• Business objectives are broad, long-term goals, while business aims are specific, measurable, and time-bound targets.

  False
• What do business aims provide for a business?

  Overall direction
• Match the business aim with its corresponding description:

  Profit maximization ↔️ Earning the highest possible profits

  Growth ↔️ Expanding the scale of the business

  Social responsibility ↔️ Considering society and environment

  Survival ↔️ Ensuring the business operates
• Business objectives are time-bound targets that help achieve overall business aims
• Business aims are specific, measurable, and time-bound targets

  False
• Business objectives are short-term steps to achieve broad, long-term business aims


  True
• What are common business aims?

  Profit maximization, growth, survival
• What is the description of the business aim 'profit maximization'?

  Earning the highest possible profits
• Business aims provide the overall direction and vision for a business, guiding its long-term strategy
• Match the business aim with its description:

  Profit maximization ↔️ Earning the highest possible profits

  Growth ↔️ Expanding the scale of the business

  Survival ↔️ Ensuring the business continues to operate

  Social responsibility ↔️ Considering the impact on society
• Profit maximization and growth are common examples of business aims
• Business aims are long-term, while business objectives are short-term
• SMART objectives are specific, measurable, achievable, relevant, and time-bound
• Order the steps involved in linking aims, objectives, and strategy:

  1️⃣ Identify business aims

  2️⃣ Define business objectives

  3️⃣ Develop a business strategy

  4️⃣ Implement the strategy
• What is the aim of profit maximization in a business?

  Earning the highest profits
• What does social responsibility as a business aim consider?

  Impact on society and environment
• What is the primary characteristic of business aims?

  Long-term, broad goals
• Business aims are long-term and broad, while business objectives are short-term and specific
• Business aims guide a business's long-term strategy and decision-making.


  True
• What do business aims provide for a business?

  Direction and vision
• What is an example of a common business objective?

  Increase sales by 10%
• Setting clear, achievable business objectives is crucial for a business to effectively work towards its overarching aims
• Business objectives are the specific, measurable, and time-bound targets to achieve overall business aims