Business Objectives Quiz
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Questions and Answers

Match the reasons for business growth with their descriptions:

Avoid being a takeover target = To protect the business from external threats To reduce the risk of business failure = To ensure long-term sustainability To become the market leader = To dominate the sales within a market To take advantage of economies of scale = To reduce costs through increased production

Match the terms with their definitions in the context of market share:

Market share = Percentage of total sales a business contributes Market leader = Business with the highest sales in the market Rival customers = Customers of competing businesses Product improvement = Enhancing offerings to attract more customers

Match the characteristics of social enterprises with their descriptions:

Not aimed at profit = Focus on social objectives instead of profit maximization Reinvestment of surplus = Utilizing profits for community support or business growth Social aims = Objectives oriented towards social welfare Not charities = Organizations that operate with a business model but focus on social impact

Match the terms related to satisficing with their explanations:

<p>Satisficing = Aiming for a satisfactory outcome rather than an exceptional one Herbert Simon = The economist who introduced the concept of satisficing NHS example = Operating within budget constraints Drastic cuts = Significant reductions that are avoided in satisficing</p> Signup and view all the answers

Match the business objectives with their descriptions:

<p>Profit maximisation = Bringing in more money than spent Survival = Continuing to trade during economic downturns Corporate social responsibility = Acting ethically and contributing to society Customer satisfaction = Meeting the needs and expectations of clients</p> Signup and view all the answers

Match the managerial objectives with their potential pursuits:

<p>Increase their own salary = Managers aiming for personal financial gain Promotion opportunities = Seeking advancement within the organization Pursue personal aims = Managers focusing on individual goals over company goals Organizational objectives = Goals that benefit the company as a whole</p> Signup and view all the answers

Match the ways to maximise profit with their descriptions:

<p>Increase sales/selling price = Raising the price of a product sold Reduce costs = Minimizing expenses to improve profit margins Sales maximisation = Focusing on selling as many units as possible Provide a quality service = Offering excellent customer experiences</p> Signup and view all the answers

Match the following terms with their definitions:

<p>Sales maximisation = Goal driven by personal objectives of management Quality service = Enhancing reputation to attract new customers Managerial objectives = Goals set to ensure efficient management Social enterprise = Business model focusing on social goals</p> Signup and view all the answers

Match the business objectives with their focus areas:

<p>Growth = Increasing market share Satisfying = Meeting stakeholder needs Profit maximisation = Financial performance improvement Survival = Maintaining operational status</p> Signup and view all the answers

Match the strategies to their aims:

<p>Increase sales/selling price = Grow revenue and profit Reduce costs = Enhance efficiency and margins Corporate social responsibility = Benefit society while earning profits Provide a quality service = Cultivate customer loyalty and trust</p> Signup and view all the answers

Study Notes

Business Objectives

  • Businesses aim to make a profit, grow, and survive, alongside fulfilling a range of other objectives.
  • Survival is crucial for businesses so they can continue to trade, especially during economic downturns.
  • Profit Maximisation is the goal of many, with profit defined as the difference between revenue and expenses.
  • Sales Maximisation can conflict with profit maximisation, as managers may prioritize quantity over profitability.
  • Growth objectives include becoming market leaders, increasing profits, and avoiding takeover risks.
  • Market Share refers to the percentage of total sales in a market a business holds, with the highest share belonging to the market leader.
  • Social Enterprise focuses on social aims and objectives, with any surplus reinvested or used to benefit the community.
  • Satisficing aims for satisfactory results rather than exceptional ones.
  • Managerial Objectives can be separate from the overall business goals, and managers may prioritize personal gain.
  • Providing a Quality Service is essential for both private and public sector organisations to attract customers and build a good reputation.
  • Customer Satisfaction is critical for the success of any business, as it encourages customer loyalty and discourages negative reviews.
  • Enterprise is the drive to keep businesses moving forward through innovation, improved products or services, and cost-effectiveness.
  • Corporate Social Responsibility (CSR) focuses on ethical and environmentally friendly practices that benefit society and the environment.

Corporate Social Responsibility (CSR)

  • Definition: CSR refers to organizations aiming to act in an ethical way that benefits either society or the environment.
  • Responsibilities:
    • Ethical & Environmental: Avoiding child labor, using fair trade practices, and reducing environmental impact.
    • Philanthropy: Donating to charities.
    • Economical: Employing fair and competitive marketing practices.
    • Legal: Adhering to laws governing businesses.
  • Importance: CSR is crucial for building a good reputation and preventing decreased sales.
  • Examples: The Body Shop's animal-friendly testing, M&S's fair trade products, McDonald's recycling bins, and carmakers reducing fuel emissions.
  • Advantages: Enhances reputation, attracts ethical consumers and employees, benefits society and the environment.

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Description

Test your knowledge on the various objectives businesses aim to achieve, including profit maximization, market share, and survival strategies. This quiz covers the nuances of growth, sales maximization, and the role of social enterprises. Challenge yourself to understand how these objectives impact managerial decisions.

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