Business objectives and stakeholder objectives

When the economy is moving into recession, the objectives of the business will be:

• 0. survival
     

• 0. profit
     

• 0. returns to shareholders
     

• 0. growth of the business
     

• Which stakeholder group put capital in to set up and expand the business?

• Workers

• Owners

• Managers

• Customers

• Which stakeholder group are also employees of the business and control the work of other workers?

• Owners

• Workers

• Managers

• Government

Most likely objectives for the Government as a stakeholder is:

• well-designed products of good quality

• • high salaries

• • expects all firms to stay within the law

• expect the business to be able to pay interest and repay capital lent

Internal stakeholder of a business:

• Manager

• Customer

• Government

• Bank

________ is the percentage of total market sales held by one brand or business.

• Added Value

• Market Share

• Dividend

• Interest

________ is total income of a business (revenue) less total costs.

• Dividend

• Profit

• Interest

• Bonus

Benefits of setting business objectives:

• help in analysing financial data

• help in setting selling price of the product

• • give workers and managers a clear target to work towards

If the total value of sales in a market is $200 million in one year and Company A sold $40 million, then Company A’s market share is ________ %.

• 10%

• 20%

• 40%

• 30%

Most likely objectives for the owner/s is:

• Profits Return on capital

• Salaries

• Job security

• Increasing national output