1.3 Setting business aims and objectives

Which of the following best describes a business objective?

• It sets out specifically how a business aim can be met in a certain time

• It is a general goal of the business

• It is a qualitative statement that is displayed publically in the firm

• It is target that will never change

Budget airline, easyJet aims to reduce fuel usage and carbon emissions of its aircraft. This is an example of:

• A social objective

• An environmental objective

• A shareholder objective

• A profit objective

UK supermarket, Tesco has opened stores all over the world. Which of the following objectives has the supermarket met?

• Increasing customer satisfaction

• International growth

• Profit maximisation

• Increasing shareholder value

Which of the following statements best defines the term market share?

• The increase in total sales made by a business

• The percentage increase in sales made by a business

• The increase in total market sales

• The percentage of total market sales made by one business

British cosmetics business, Lush makes products such as soaps and shampoos. It does not buy ingredients that have been tested on animals. This is classed as:

• A growth objective

• An ethical objective

• A profit objective

• A shareholder objective

Which of the following organisations is likely to have social considerations as its main aim?

• EE

• ALDI

• OXFAM

• H&M

Which of the following is the main aim of a not-for-profit organisation?

• Growth

• Profit maximisation

• Increase market share

• Benefit society

Which of the following would be an example of international expansion?

• A UK coffee shop chain opening a new store in London

• A UK clothes retailer opening another store in the UK

• A UK supermarket opening stores in Spain

• A UK car manufacturer opening a factory Birmingham

Vauxhall aims to increase the number of cars it sells in the UK as a proportion of the total UK car market sales. Which of the following best describes this aim?

• Increasing shareholder value

• International expansion

• Increasing market share

• Maximising profit

Which of the following is the main reason a business would set business objectives?

• To increase its market share

• To help the local community

• To provide direction to the firm

• To satisfy its customers