AS Level Chapter 4 Review

What is a business objective?

• A long-term goal for future success
• A statement about ethics
• A random decision made by management
• An unrelated business practice

Answer explanation

A business objective provides long-term goals for a business's future direction.

Why are business objectives important?

• They help businesses stay focused and measure success
• They reduce the need for managers
• They help avoid employee motivation
• They replace the need for decision-making

Answer explanation

Objectives give direction, help measure success, and keep the business focused.

What is a mission statement?

• A company’s vision for the next 10 years
• A short-term tactic
• A brief description of a company's purpose and values
• A list of ethical practices

Answer explanation

A mission statement defines the purpose and values of a company.

Which is a common objective in the private sector?

• Maximize profit
• Offer free services
• Focus only on customer satisfaction
• Reduce costs to zero

Answer explanation

Private sector businesses commonly aim to maximize profit.

What is an example of a SMART objective?

• Be successful in the market
• Increase sales by 20% in 12 months
• Grow faster than competitors
• Be the best company in the world

Answer explanation

SMART objectives are Specific, Measurable, Achievable, Relevant, and Time-bound.

How do business objectives influence decision-making?

• They remove the need for decisions
• They set clear goals for decisions to be based on
• They delay decisions
• They only help employees

Answer explanation

Objectives guide decision-making by providing a clear direction and goals.

Why might objectives change over time?

• As a company grows and external factors change
• To avoid making a profit
• To reduce staff motivation
• To avoid competing

Answer explanation

Objectives evolve with changes in the market, economy, and business growth.

What is profit satisficing?

• Maximizing revenue over costs
• Earning just enough profit to satisfy owners
• Investing all profits
• Ignoring profits entirely

Answer explanation

Profit satisficing means making enough profit to satisfy the business owners without pushing for maximum profit.

What is corporate social responsibility (CSR)?

• A focus on only maximizing profit
• A commitment to ethical, social, and environmental concerns
• Ignoring customer feedback
• Reducing business operations

Answer explanation

CSR refers to a company’s efforts to be socially and environmentally responsible.

What is a drawback of ethical business practices?

• They lower short-term profits
• They always increase revenue
• They reduce customer trust
• They prevent expansion

Answer explanation

Ethical practices often increase short-term costs but benefit the business in the long term.