topic 1.1 business objectives

What are financial aims and objectives of a business?

• A) Social objectives and personal satisfaction

• B) Survival, profit, sales, market share, and financial security

• C) Independence and control only

• D) Challenge and personal satisfaction

• E) Environmental objectives

A: B - Survival, profit, sales, market share, and financial security

Which of the following is a NON-financial aim or objective?

• A) Profit maximization

• B) Increasing market share

• C) Social objectives

• D) Sales growth

• E) Financial security

A: C - Social objectives

Why might business aims and objectives change as a business evolves?

• A) Only due to internal reasons

• B) Only due to market conditions

• C) In response to market conditions, technology, performance, legislation, and internal reasons

• D) They never change once set

• E) Only when the business makes a loss

A: C - In response to market conditions, technology, performance, legislation, and internal reasons

Financial aims and objectives include survival, profit, sales, market share, and ____________________ security.

Financial

Non-financial aims and objectives include social objectives, personal satisfaction, challenge, independence, and ____________________.

Control

Define "financial objectives."

Goals related to money and financial performance, such as survival, profit, sales, market share, and financial security.

Define "non-financial objectives."

Goals not directly related to money, such as social objectives, personal satisfaction, challenge, independence, and control.

Why do business objectives change?

Business objectives change in response to:

• Market conditions

• Technology

• Performance

• Legislation

• Internal reasons