What is Business?
Business includes trading or between individuals and companies. It is the investement of time and money to turn an idea into reality. It can also mean making a (or a loss).
Why do businesses exist?
to create jobs
to pay more tax
to create competition with a rival
Label this diagram of the Hierarchy of Objectives
What are the four main objectives of a bsuiness?
to learn another language
social and ethical
to pay more taxes
Why do businesses set objectives?
They may set objectives in order to their staff or to act as a reason for continued . Some objectives can staff, and give employees assurance. Objectives can give a sense of and can make it easier to within the business - the leaders cannot every decision made.
Explain the relationship between the mission and objectives?
The is the overall aim of the organisation. Once this has been agreed upon, the objectives of the , the and the can then be set. The mission will be , as all of the other objectives in the business build achieving it, and it still has to to all of them.
When might survival be an important business objective?
Survival would be an important objective to have in all situations, but especially when the economy is experiencing a or a recession. If the country's economy is slowing down, them people () are less likely to spend money. This then leads to a in sales, and then consequently revenue. Survival requires the company to be able to pay its creditors, and still have enough to meet all of their . When revenue decreases, so does the chances of - this would be a very important period to keep going.
What is the definition of 'Profit Maximisstion'?
when a business tries to achieve the maximum profit with low running/production costs
when a business tries to find an alternative with the most cost effective/ highest achievable performance under given constraints
improving some measure of the business' success e.g. sales figures, revenue, or profit
What is the definition of 'Profit Optimisation'?
When a business tries to find an alternative with the most cost effective/highest achievable performance under given constraints
The money in and out of a business
Improving some measure of the business’ success e.g. sales figures, revenue or profit
What is the definition of 'Business Growth'?
When a business tries to achieve the maximum profit with low running costs
What is the definition of 'Social Ethics'?
Trying to stay functioning hopefully with profits, but continuing to exist
When the business tries to stick to certain ethical guidelines in order to help those less fortunate or the environment e.g. donating 10% of profits to a charity or only using Fairtrade products