Unit 22 - Aims and Objectives

Making Profits

• PVT

• PUB

• VOL

Answer explanation

Private companies mainly aim to make profit in order to pay their shareholders and to give them the ability to grow the business.

Break-even

• PVT

• PUB

• VOL

Answer explanation

If a company does not make profit, they should at least try to break-even, meaning they are not losing money.

Survival

• PVT

• PUB

• VOL

Answer explanation

Smaller companies, especially those early in operation, need to survive so that they can start to build and grow the business in future years.

Growth

• PVT

• PUB

• VOL

Answer explanation

With growth, it allows a company to increase their sales and therefore their revenue/profit.

Market Leadership

• PVT

• PUB

• VOL

Answer explanation

If a company are market leaders then they are generating the most sales, therefore increasing their revenue and profits.

Diversification

• PVT

• PUB

• VOL

Answer explanation

The more services/products a company provides, the more potential customers they will have. This will help with sales, revenue and profit.

Service Provision

• PVT

• PUB

• VOL

Answer explanation

The more services/products a company provides, the more potential customers they will have. This will help with sales, revenue and profit.

Strong Customer Satisfaction

• PVT

• PUB

• VOL

Answer explanation

If private companies have higher customer satisfaction, then they are more likely to get repeat business and good word of mouth. This will generate more sales and revenue.

Cost Control

• PVT

• PUB

• VOL

Answer explanation

As public companies main income is tax, they want and need to control their costs.

Value for Money

• PVT

• PUB

• VOL

Answer explanation

As people pay their taxes, they want to see their money being put to good use.