Higher Revision - Objectives/Growth

Select all factors that affect the choice of objective.

• Sector of economy

• When the business was founded

• Size of organisation

• Changing circumstances

Which of these is NOT an objective of the third sector?

• Maximising profits

• Survival

• Providing a quality service

• CSR

Which sector of economy is this objective best suited to? (This does not mean that other sectors will not also set this as an objective)

Work within a budget

• Public sector

• Private sector

• Third sector

True or False?

Managerial objectives are set by private sector organisations. This is when managers pursue their own objectives that they believe will improve their status within the company.

• True

• False

Which of these is NOT an advantage of having good CSR?

• The business gains a good reputation for itsd caring nature.

• The business will be able to reach a lager customer base.

• Customers who agree with the aim are likely to use the business.

• The business can attract high-quality staff who believe in the ethics of the business.

Name the objective:

This means aiming for a satisfactory or adequate result, rather than the best possible outcome. Through doing this, a business could aim to satisfy the main stakeholders, perhaps making enough profit to cover satisfactory dividends to shareholders.

True or False?

Growth is an objective

• True

• False

What is conglomerate integration?

• When two businesses in the same industry and direct competition merge together.

• When businesses in different markets merge together. Their activities are unrelated.

• When a business takes over another business that is at a later stage of production/sector of industry.

• When a business decides to grow internally e.g. hiring more staff, releasing a new product etc.

Select the DISADVANTAGE of a takeover.

• Risk of failure can be spread.

• Economies of scale can be achieved.

• It can be expensive to acquire another business.

• The buying business gains the market share and resources of the taken-over business.