Chapter 5 Business objectives and stakeholder objectives

One of the claimed benefits of having clear objectives is that

• all customers know what the business is trying to achieve
• the managers have a sense of direction when taking decisions
• the business will always make a profit
• there will be no arguments between managers and workers 

Which one of the following isn't likely to be a common business objective?

• To make profit
• To provide a service to the community
• To pay as much tax as possible
• To increase market share

Most businesses are likely to put survival as their main objective when

• the competition is  becoming weaker
• the economy is becoming weaker
• the government plans to increase grants to firms
• consumers are increasing their demand for products

A business might have growth as one of its objectives because

• they will be able to benefit from diseconomies of scale
• they would be more likely to increase market share
• the shareholders always prefer growth to increased profits
• all businesses have to grow in order to survive

Which one of the following statements about stakeholder groups is accurate?

• Stakeholders are people who are not interested in business
• Stakeholder groups have direct interest in firms  decisions
• Shareholders of a ltd company are not a stakeholder group

Social enterprises are likely to have which combination of objectives?

• Maximum returns for owners and increased market share
• Community service, profits and protection of the environment
• Survival and an increased share price
• Increased profits for owners and protection of the community

Which of the following stakeholders is most likely to be in favor of a new shopping center?

• Owners of an existing town centre shop
• Families with small children
• Environmental groups who want less car use
• Trade Unions who would like the creation of new jobs

How can a  conflict between stakeholder groups about a new shopping center be reduced?

• New shops pay taxes to pay for building a new leisure park
• The owners of new shops employ workers from other towns
• The shoppers are allowed free parking in the new centre

What is the most likely objective of a newly formed business enterprise?

• Survival
• Maximum profit
•  Rapid growth
• Providing a service to the community.

A statement of specific target to be achieved. They should be SMART.

• Objective

• Profit

• Revenue

• Delegation