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| Question | Answer |
| Why do businesses set objectives? | To be able to work towards a business goal Business objectives = small steps towards business goal |
| Profit Maximisation | Process that a business undergoes to determine the best output and prices - to create high income and profit |
| Sales Maximisation | Business attempts to sell as much as possible without making a loss |
| Satisficing | Reaching minimum requirements to fulfill a goal / objective |
| Survival | To make enough income to be able to cover costs so that the business is not making a loss |
| Market Share | Portion of a market - controlled by a particular business |
| Cost Efficiency | Carrying out production in a better way in order to decrease costs - make them more efficient |
| Return On Investment | A measure of profitability - shows whether a business is using its resources efficiently |
| Employee Welfare | A business has to provide various benefits to ensure the employees welfare - looking after their employees (health and safety, wages) |
| Customer Satisfaction | How products / services meet customer expectations and needs |
| Social Objectives | Desired outcome for a business - ensure that there is no negative effects for the community / society - Business may have extra costs to use products that don't harm the enviroment |
| Reason for profit maximisation : | To create a positive cash flow - create profit for the owners/business |
| Reason for sales maximisation: | To achieve a rapid growth of market share - be able to be the market leader |
| What objective would a business wanting to meet customer expectations set? | Customer satisfaction |
| What objective would a business wanting to carry out production more efficiently set? | Cost efficiently |
| What objective would a business that wants to make enough income to cover costs set? | Survival |
| What objective would a business set when it intends to reach minimum requirements to fulfill and objective / goal | Satisficing |
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