Business Objectives

What is the main benefit of setting clear and measurable objectives for a business?

• Motivate people

• Create confusion among workers

• Increase employee turnover

• Reduce productivity

What is the formula to calculate profit for a business?

• Profit = Total Sales Revenue - Total Costs

• Profit = Total Sales Revenue / Total Costs

• Profit = Total Sales Revenue * Total Costs

• Profit = Total Sales Revenue + Total Costs

Why do businesses need profits according to the text?

• To reduce market share

• To discourage managers from keeping their jobs

• To decrease returns to shareholders

• To provide finance for further investment

What is the purpose of dividends in a business?

• To decrease profit

• To discourage shareholders from investing

• To increase the share price

• To pay a return to the owners

How is market share percentage calculated?

• Market Share % = Total Sales Revenue / Total Market Sales

• Market Share % = Company Sales Total / Total Market Sales X 100

• Market Share % = Company Sales Total / Total Market Sales

• Market Share % = Company Sales Total - Total Market Sales

What does increased market share provide a business with?

• Decreased influence over suppliers

• Decreased size compared to competitors

• Decreased influence over customers

• Good publicity

What is the main social objective of a social enterprise according to the text?

• To maximize profits for shareholders

• To provide jobs and support for disadvantaged groups

• To exploit the environment

• To discourage community involvement

What is the main objective of the stakeholder group 'Employees'?

• To have job security and satisfaction

• To provide finance for the business

• To buy goods and services from the business

• To gain a rate of return on their investment

What is the main objective of the stakeholder group 'Customers'?

• To decrease the country's output

• To buy unsafe and unreliable products

• To have unreliable service and maintenance

• To buy well-designed products of good quality

What is the main objective of the stakeholder group 'Government'?

• To provide finance for the business's operations

• To expect all firms to break the law

• To decrease the country's output

• To pass laws to protect workers and consumers