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Questions and Answers
What is the primary aim of setting business objectives?
In a highly competitive market, what is a primary objective for firms?
What is the income of a business from its activities after deducting total costs called?
What could firms decide to do in order to achieve the objective of survival in a highly competitive market?
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Why do managers compare the business' performance to its objectives?
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What is the main motivator for employees according to the text?
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Why do firms go to the trouble of ensuring their workers are motivated?
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What is the primary reason people work according to the text?
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What may motivate a person to choose a particular job, as mentioned in the text?
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What can happen if an employee is unhappy at work, according to the text?
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Study Notes
Business Objectives
- The primary aim of setting business objectives is to provide direction and a clear focus for the organization’s efforts.
- Objectives help in decision-making processes, ensuring alignment with the company’s vision.
Competitive Market Objectives
- A primary objective for firms in a highly competitive market is to achieve market share and remain competitive.
- Firms may aim to differentiate their products or services to outperform competitors.
Business Income Terminology
- The income of a business from its activities after deducting total costs is known as profit.
- Profit serves as a key indicator of a company’s financial health.
Survival Strategies
- To achieve the objective of survival in a competitive market, firms may decide to implement cost-cutting measures.
- Firms could also diversify their product lines to appeal to a broader customer base.
Performance Comparison
- Managers compare the business's performance to its objectives to assess effectiveness and identify areas for improvement.
- This comparison helps in adapting strategies to better meet business goals.
Employee Motivation
- The main motivator for employees is often linked to financial compensation, such as salaries and bonuses.
- Job satisfaction and recognition are also crucial factors influencing employee motivation.
Importance of Employee Motivation
- Firms invest in ensuring their workers are motivated to enhance productivity and reduce employee turnover.
- Motivated employees are more engaged and contribute positively to the company’s success.
Reasons for Employment
- The primary reason people work is to earn a living and support their basic needs, such as food and shelter.
- Job security and benefits also play significant roles in the decision to work.
Job Choice Motivation
- Factors that may motivate a person to choose a particular job include personal interests, career growth opportunities, and work-life balance.
- Additionally, a positive company culture can influence job selection.
Consequences of Unhappiness at Work
- If an employee is unhappy at work, it can lead to lower productivity and increased absenteeism.
- Unhappiness may result in high turnover rates, costing firms time and resources in recruitment and training.
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Description
Test your knowledge about business objectives and their importance in running a successful business. Understand the benefits of setting clear targets and how they can impact motivation and decision making within a business.
