15 Questions
Define objectives and explain why they are important for an organization.
Objectives are specific targets of performance that an organization wants to achieve in a particular time frame. They are important as they provide direction, motivation, and a means of measuring success.
What are SMART objectives? Provide an example.
SMART objectives are Specific, Measurable, Achievable, Relevant, and Time-bound goals. An example could be 'Increase sales by 10% within the next quarter.'
Explain the hierarchy of objectives within an organization.
The hierarchy of objectives starts with the overall mission, followed by strategic objectives, tactical objectives, and operational objectives. These objectives are interconnected and align towards achieving the organizational mission.
Discuss the ethical responsibilities of businesses in achieving their objectives.
Businesses have an ethical responsibility to pursue objectives in a manner that is fair, honest, and respects the well-being of all stakeholders. This includes considering the impact of their actions on society and the environment.
How do objectives help in guiding decision-making within an organization?
Objectives provide a clear direction for decision-making by outlining what the organization aims to achieve. Decisions can be evaluated based on their alignment with these objectives.
Describe the relationship between desired consumption expenditure and current disposable income.
The consumption function shows the relationship between desired consumption expenditure and current disposable income.
How do non-income factors affect autonomous consumption?
Non-income factors (exogenous factors) affect autonomous consumption by causing shifts of the consumption function.
Explain the difference between parallel and non-parallel shifts of the consumption function.
Parallel shifts do not cause changes in the MPC (slope), while non-parallel shifts can change the MPC (slope).
How do factors affecting autonomous consumption impact the savings function?
Factors leading to an increase in autonomous consumption cause a shift of the savings function downward (decrease in savings), and vice versa.
What implication does an increase in autonomous consumption have on the savings function?
An increase in autonomous consumption leads to a downward shift of the savings function (decrease in savings).
How do consumer expectations regarding inflation influence current consumption?
Increase in current consumption due to anticipated fall in the value of money in the future
Explain the relationship between wealth and consumer spending.
As wealth increases, consumers tend to spend more out of a given level of current income
How does indebtedness impact consumer behavior in relation to consumption?
Consumers tend to reduce consumption to cut back on indebtedness
Discuss the effect of changes in interest rates on consumer spending.
A fall in interest rates leads to an increase in consumption, regardless of current income
How does a decrease in direct taxes affect consumers' disposable income?
Even with unchanged absolute income, a fall in direct taxes increases consumers' disposable income
This quiz highlights the significance of objectives in a business setting. It explains how objectives serve as a guide for employees and management, aid in decision-making, provide a sense of direction, and facilitate performance analysis.
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