1.3.1 Business Aims & Objectives

What is a business aim?

• A legal requirement for all businesses

• A short-term plan to reduce costs

• A long-term goal a business wants to achieve

• A financial report to shareholders

What is meant by a business objective?

• A slogan used in marketing

• A measurable step to help achieve an aim

• A product launch date

• A type of loan

Which of the following is a financial aim?

• Gaining independence

• Helping the community

• Survival

• Personal satisfaction

An objective must be…

• Vague and flexible

• Measurable and specific

• Emotional and personal

• Written by investors

What is an example of a non-financial objective?

• Earning a profit

• Increasing sales

• Personal satisfaction

• Maximising market share

Why do businesses set objectives?

• To avoid paying tax

• To measure progress and success

• To hire more staff

• To get discounts from suppliers

What is a SMART objective?

• Sustainable, Market-driven, Aimed, Reliable, Targeted

• Sales, Marketing, Advertising, Revenue, Turnover

• Specific, Measurable, Achievable, Realistic, Time-bound

• Safe, Measured, Approved, Ranked, Tested

What is the difference between aims and objectives?

• Aims are day-to-day tasks, objectives are long-term

• Aims are specific, objectives are general

• Aims are long-term goals, objectives are specific steps to reach them

• There is no difference

Which of these best describes 'market share'?

• The number of new employees hired

• The amount of product sold abroad

• A business’s sales as a percentage of total market sales

• The amount of cash available

Which business type is most likely to have social objectives?

• Multinational corporations

• Charities or social enterprises

• Sole traders

• Public limited companies