Importance of Objectives in Business

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.

SMART objectives are Specific, Measurable, Achievable, Relevant, and Time-bound goals. An example could be 'Increase sales by 10% within the next quarter.'

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.

<p>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.</p> Signup and view all the answers

<p>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.</p> Signup and view all the answers

<p>The consumption function shows the relationship between desired consumption expenditure and current disposable income.</p> Signup and view all the answers

<p>Non-income factors (exogenous factors) affect autonomous consumption by causing shifts of the consumption function.</p> Signup and view all the answers

<p>Parallel shifts do not cause changes in the MPC (slope), while non-parallel shifts can change the MPC (slope).</p> Signup and view all the answers

<p>Factors leading to an increase in autonomous consumption cause a shift of the savings function downward (decrease in savings), and vice versa.</p> Signup and view all the answers

<p>An increase in autonomous consumption leads to a downward shift of the savings function (decrease in savings).</p> Signup and view all the answers

<p>Increase in current consumption due to anticipated fall in the value of money in the future</p> Signup and view all the answers

<p>As wealth increases, consumers tend to spend more out of a given level of current income</p> Signup and view all the answers

<p>Consumers tend to reduce consumption to cut back on indebtedness</p> Signup and view all the answers

<p>A fall in interest rates leads to an increase in consumption, regardless of current income</p> Signup and view all the answers

<p>Even with unchanged absolute income, a fall in direct taxes increases consumers' disposable income</p> Signup and view all the answers