Chapter 5

Question 1

Business objectives

Answer 1

The aims or targets that a business works towards.

Question 2

Profit

Answer 2

Total income (revenue) of a business less total costs.

Question 3

Market share

Answer 3

The proportion (%) of total market sales held by one brand or business
Sales of business / total market sales x 100

Question 4

Social enterprise

Answer 4

An organisation with profit, environmental and social objectives.

Question 5

Stakeholder

Answer 5

Any person or group with a direct interest in the performance and activities of a business,

Question 6

Importance of business objectives

Answer 6

• Act as motivator
• Helps with decision-making
• Makes the business work over a goal
• Acts as a measure of achievement

Question 7

Examples of business objectives can be

Answer 7

• Business survival
• Profit
• Growth
• Market share

Question 8

What is the main objective of a social enterprise?

Answer 8

Provide service to society

Question 9

Internal stakeholders

Answer 9

• Owners
• Workers
• Managers

Question 10

Examples of external stakeholders

Answer 10

• Consumers
• Government
• Community
• Bank

Question 11

Private sector objectives

Answer 11

Business survival
profit
growth
returns to shareholders
market share
return to society

Question 12

Public sector objectives

Answer 12

Provide service to the community
increase living standards
Increase jobs to lower unemployment