Understanding Business Objectives

What is the primary aim of profit maximisation?

• To diversify product offerings in the market.

• To increase financial returns of a business.

• To reduce operational costs of a business.

• To enhance employee satisfaction and morale.

How does sales revenue maximisation differ from profit maximisation?

• Sales revenue maximisation is concerned with market share, whereas profit maximisation ignores sales volume.

• Sales revenue maximisation aims to reduce costs, while profit maximisation increases sales volume.

• Sales revenue maximisation focuses on short-term gains, while profit maximisation is about long-term sustainability.

• Sales revenue maximisation prioritizes total sales volume, whereas profit maximisation focuses on maximizing profit margins.

What is the goal of cost minimisation in a business?

• To reduce expenses and improve profitability.

• To focus solely on marketing expenses.

• To hire more employees regardless of expenses.

• To increase production costs for better quality.

Why is customer satisfaction considered a non-financial objective?

• Customer satisfaction is only about reducing costs.

• Customer satisfaction measures employee performance.

• Customer satisfaction focuses on quality and loyalty rather than direct monetary gains.

• Customer satisfaction directly increases profits.

What are some ways to improve employee welfare?

• Increase workload without support

• Reduce employee hours without pay

• Limit access to training programs

• Enhance work-life balance, provide health programs, offer competitive salaries, create a positive environment, encourage professional development.

How can a business contribute positively to society?

• By implementing corporate social responsibility initiatives and supporting community development.

• By focusing solely on profit maximization without regard for social impact.

• By avoiding any engagement with local communities.

• By reducing employee benefits to cut costs.

What does it mean for a business to focus on growth?

• A business focusing on growth intends to decrease its market share.

• A business focusing on growth aims to reduce its workforce.

• A business focusing on growth seeks to minimize its product offerings.

• A business focusing on growth aims to increase its size and market presence.

What does SMART stand for in the context of objectives?

• Simple, Manageable, Attainable, Realistic, Timely

• Specific, Measurable, Achievable, Reliable, Time-limited

• Specific, Measurable, Achievable, Relevant, Time-bound

• Specific, Measurable, Ambitious, Relevant, Time-sensitive

Why is it important for objectives to be specific?

• Specific objectives are less motivating.

• Specific objectives are only necessary for large projects.

• Specific objectives can limit creativity.

• It is important for objectives to be specific because they provide clarity and measurable targets.

How can measurable objectives benefit a business?

• Measurable objectives benefit a business by providing clarity, enhancing accountability, and enabling performance tracking.

• Measurable objectives are only useful for large corporations.

• Measurable objectives reduce the need for performance reviews.

• Measurable objectives create confusion among team members.