questions and answers
What are common business objectives? - Answer Profit
Growth
Survival
Cash flow
Social
Ethical
Objectives should be "SMART". What does this mean? - Answer They should be:
Specific
Measurable
Agreed
Realistic
Time related
What is a mission statement? - Answer A brief written statement about the purpose of a
company or organisation
What are corporate aims? - Answer Long term plans to fulfil the mission statement
What are corporate objectives? - Answer Medium to long term quantifiable targets to
achieve the mission statement
What is a corporate strategy? - Answer Actions tken by a business to achieve the
strategy
What are tactics? - Answer Day to day actions to support the strategy
Why set objectives? - Answer -common sense of purpose
-motivate employees
-create reward systems
-measure and review performance
-Inform decisions to improve performance
How is revenue calculated? - Answer Selling price x quantity sold
How is total costs calculated? - Answer Fixed costs + variable costs
On a graph, how is total costs shown? - Answer Start at the fixed costs point and slope
upwards depending on variable costs
What will businesses with a profit objective aim to do? - Answer -Increase sales
revenue
-Reduce expenditure