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8 Cards in this Set
- Front
- Back
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Businesses exist to... |
provide goods and services to customers. |
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Eight potential business objectives: |
1. To be the biggest in the market. 2. To provide the highest quality product. 3. To maximise sales or wealth creation. 4. To remain stable, i.e. to maintain the business’s market share or a reasonable income. 5. Expansion. 6. To be independent. 7. Customer satisfaction. 8. To limit environmental damage. |
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The most important objective for a business is to: |
Make a profit in order to avoid bankruptcy and closure. |
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Most businesses are started when: |
Somebody decides that they can make goods or provide a service that they can sell to people who are willing to pay. |
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What types of businesses do not value profit as a main objective? |
Not-for-profit organisations such as charities, and public sector businesses. |
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How much income do not-for-profit organisations require, and what do they do with any surplus? |
They need only cover their costs. Any surplus goes back into the business. |
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What term is given to profit-seeking businesses that exist to achieve social objectives, such as providing help for the homeless, or farmers in poorer countries? What do they do with any profit they make? |
Social enterprises, or ‘more-than-profit’ organisations aim to use the profit they make for the benefit of society. |
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Name three reasons one might have for starting a business: |
1. Financial. 2. Personal, e.g. for independence, difficulties finding a job elsewhere, or a desire to see their ideas put into practice. 3. To help others, by starting a charity for example. |
