What is the difference between aims and objectives?
An objective is an overall goal and aims are the steps needed to achieve that goal
An aim is an overall goal and objectives are the steps needed to achieve it
An aim is where a business wants to be in six years and objectives are where a business wants to be in five years
Which of the following is an example of market conditions changing?
Having lots of new competitors
A new law being introduced
Previous years’ finances not matching the cash flow forecast
What aim would a business have if lots of new competition entered a market?
Growth
Survival
Adapting to new legislation
Which of the following is not an example of performance impacting aims and objectives?
Sales
Market share
Competition
What is one key reason a business might aim to enter a new market?
It has spotted a gap in the market
There are lots of competitors in the new market
Its main aim is survival
What does business survival mean?
When a business aims to make a profit
When a business aims to make a large amount of revenue
When a business aims to keep its day-to-day operations running
Which of the following is not an example of legislation aimed at businesses?
Minimum wage
Equal pay for all employees
Health and Safety at Work etc. Act (1974)
Businesses often have aims relating to performance. Why are these aims important?
Performance may affect whether or not a business is able to survive in the long term
Performance influences the amount of competition a business has
Performance is dependent on the technology a business uses
In which of these scenarios might a business choose to decrease its product range?
When the business is doing well and continuously expanding
When the business’ performance is poor
When the business is making a profit from selling products
Which of the following are the main reasons business objectives evolve?
Economies of scale, new technology, sales revenue, legislation and internal factors
Economy, prices, performance, legislation and internal factors
Market conditions, new technology, performance, legislation and internal factors