Chapter 5: Business and Stakeholders Objectives

Why are business goals essential?

• To monitor progress

• To ensure alignment with objectives

• To increase profits

• To reduce costs

How do social enterprises utilize their profits?

• Reinvesting in society and the environment

• Maximizing shareholder profits

• Donating to political campaigns

• Investing in luxury goods

What does SMART stand for in the context of business objectives?

• Simple, Measurable, Achievable, Relevant, Timely

• Specific, Measurable, Achievable, Relevant, Time-based

• Strategic, Measurable, Achievable, Relevant, Timely

• Structured, Measurable, Achievable, Relevant, Time-bound

Answer explanation

There are also one extra A and R, Agreed and Relevant!

What do shareholders want to increase the value of?

What type of internal stakeholder would investors be classified under?

Government, Customers, Lenders, Suppliers, and the Community are all considered?

Which of the following are private business objectives

• Increasing market share and expanding

• Transferring ownerships to merge into bigger businesses.

• Transforming to a public sector business

• Survival and profit

• Accomplishing corporate social responsibility

What stakeholder group would managers be classified under?

• Internal

• Workforce

• Employers and/or Supervisors

• Managers

• External