TOPIC 1.8: What Makes a Business Successful?

Which of the following is a way to measure success in business?

• Revenue (sales)

• Market share

• Customer satisfaction

• Profit

• Growth

• Owner/shareholder satisfaction

• Employee satisfaction

What is market share?

B - The proportion of total market sales achieved by a business

Which of the following is a reason for business failure?

• Cash flow problems/lack of finance

• Not competitive (cannot match rivals)

• Failure to adapt to changes in the market (customer needs, technology, competition)

Which of the following is a reason for business failure?

C - Failure to adapt to changes in the market

Why is customer satisfaction a measure of business success?

B - It leads to repeat business and positive reputation

Business success can be measured by revenue, market share, customer satisfaction, profit, growth, owner/shareholder satisfaction, and ____________________ satisfaction.

Employee

____________________ problems occur when a business does not have enough cash to pay its bills and is a common reason for business failure.

Cash flow

What are the ways to measure success in business?

• Revenue (sales)

• Market share

• Customer satisfaction

• Profit

• Growth

• Owner/shareholder satisfaction

• Employee satisfaction

What are the reasons for business failure?

• Cash flow problems/lack of finance

• Not competitive (cannot match rivals)

• Failure to adapt to changes in the market (customer needs, technology, competition)