Objectives (Economics and Businesses Studies)

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What are objectives?

SMART

  • Specific
  • Measurable
  • Ambitious and Agreed upon
  • Realistic
  • Timed

Surivival:

During times when the economy is looking bad (during a recession) a company's objective may be to survive because of financial difficulties.

Profit Maximisation:

This is where MR=MC.

This is likely to benfit the owners of the business as they get dividends through this. The sole trader finds the profit as their wages. The bigger the profit the more money can be re-invested in the business. Profit maximisation is said to be the long term objective for all firms. Both small and large firms want to profit maximise so that they can use the money to invest.

Growth:

Revenue is one of the many measures of the size of business. A business may aim to be the 'number one company in the market', i.e. have the largest market share. Other measures of growth are the capital value, the number of employees it has, increasing output to achieve economies of scale, increasing outlets or factories and increasing the influence you have to other people (for example iPhone have increased their influence because many…

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