CCEA A2 Business Studies – Unit 1 – Study Guide & Practice Questions
Mission Statement - ANS ✔✔A short statement defining the underlying aims and objectives of
the organisation. It provides the framework for running the business.
Aim - ANS ✔✔Long-term plans of the business from which its corporate objectives are derived.
Corporate Strategy - ANS ✔✔An overall plan with clearly defined objectives that provides a
clear sense of direction and assists decision making with an organisation.
Business objectives - ANS ✔✔A goal which a business is seeking to achieve.
Strategic Objectives - ANS ✔✔These are objectives set for the whole organisation by senior
management. They will have long-term implications and involve major uses of resources.
Functional Objectives - ANS ✔✔These are objectives designed to improve the efficiency of
business operations in areas such as production, marketing and sales, human resources,
finance, and research and development. They can only be effective if there is co-operation
between the business functions.
SMART Objectives - ANS ✔✔Objectives set by the businesses which are specific, measurable,
attainable, realistic and time-based. This will allow for monitoring and evaluation of
performance by management.
Profit Maximisation - ANS ✔✔Producing at a level of output which generates the most profit for
a business
Profit Satisfaction - ANS ✔✔Generating sufficient profit to satisfy owners and relevant
stakeholders such as management.
, Growth - ANS ✔✔An objective chosen to allow the firm to become competitive, to dominate
the market, to diversify and reduce risks.
Survival - ANS ✔✔A possible objective for a business during early stages of trading, during a
recession or in response to a threat from a takeover.
Corporate Image - ANS ✔✔An objective chosen to enhance the reputation of the business in
relation to ethics and social responsibility. It is the mental picture that springs up at the mention
of a firm's name.
Environment - ANS ✔✔An objective chosen when the firm is pursuing policies to reduce the
negative impact of its activities on the environment.
Conflict - ANS ✔✔The contradiction of ideas or objectives, which generally mean that one
objective cannot be achieved or that it might be achievable at the expense of another objective.
Organisational Culture - ANS ✔✔This is the way a business does things and the way that people
in the business expects things to be done. It shapes staff behaviour and attitude and how they
make decisions.
Power Culture - ANS ✔✔Refers to organisations where decision making is limited to one/or a
small number of people.
Role Culture - ANS ✔✔Refers to bureaucratic firms where authority is defined by job title.
Person Culture - ANS ✔✔Refers to a loose organisation of individual workers e.g. professional
partnerships such as accountants or solicitors.
Mission Statement - ANS ✔✔A short statement defining the underlying aims and objectives of
the organisation. It provides the framework for running the business.
Aim - ANS ✔✔Long-term plans of the business from which its corporate objectives are derived.
Corporate Strategy - ANS ✔✔An overall plan with clearly defined objectives that provides a
clear sense of direction and assists decision making with an organisation.
Business objectives - ANS ✔✔A goal which a business is seeking to achieve.
Strategic Objectives - ANS ✔✔These are objectives set for the whole organisation by senior
management. They will have long-term implications and involve major uses of resources.
Functional Objectives - ANS ✔✔These are objectives designed to improve the efficiency of
business operations in areas such as production, marketing and sales, human resources,
finance, and research and development. They can only be effective if there is co-operation
between the business functions.
SMART Objectives - ANS ✔✔Objectives set by the businesses which are specific, measurable,
attainable, realistic and time-based. This will allow for monitoring and evaluation of
performance by management.
Profit Maximisation - ANS ✔✔Producing at a level of output which generates the most profit for
a business
Profit Satisfaction - ANS ✔✔Generating sufficient profit to satisfy owners and relevant
stakeholders such as management.
, Growth - ANS ✔✔An objective chosen to allow the firm to become competitive, to dominate
the market, to diversify and reduce risks.
Survival - ANS ✔✔A possible objective for a business during early stages of trading, during a
recession or in response to a threat from a takeover.
Corporate Image - ANS ✔✔An objective chosen to enhance the reputation of the business in
relation to ethics and social responsibility. It is the mental picture that springs up at the mention
of a firm's name.
Environment - ANS ✔✔An objective chosen when the firm is pursuing policies to reduce the
negative impact of its activities on the environment.
Conflict - ANS ✔✔The contradiction of ideas or objectives, which generally mean that one
objective cannot be achieved or that it might be achievable at the expense of another objective.
Organisational Culture - ANS ✔✔This is the way a business does things and the way that people
in the business expects things to be done. It shapes staff behaviour and attitude and how they
make decisions.
Power Culture - ANS ✔✔Refers to organisations where decision making is limited to one/or a
small number of people.
Role Culture - ANS ✔✔Refers to bureaucratic firms where authority is defined by job title.
Person Culture - ANS ✔✔Refers to a loose organisation of individual workers e.g. professional
partnerships such as accountants or solicitors.
