The nature and purpose of business

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Mission
An organisation's aims or long-term intentions, it's ultimate purpose. Sometimes the same as its corporate aims
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Mission Statement
A qualitative statement of an organisation's aims that uses language to motivate employees and convince those outside the firm of its sincerity and commitment
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Business objectives
Goals that must be achieved in order to realise the stated aims of an organisation, department or individual team. Business objectives tend to be medium or long-term. They can be corporate or functional objectives
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Corporate objectives
Goals of the whole organisation rather than of different elements of the organisation. Set in order to co-ordinate the activities, give a sense of direction to and guide the actions of the whole organisation. Directed by the mission or corporate aims
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Functional objectives
Goals of each of the functional areas of business(eg;marketing,finance,HR). They are there to ensure the business achieves its corporate objectives and its overall aims and objectives. Set in order for the same reason as corporate objectives
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Strategy
The medium- to long- term plans through which an organisation intends to achieve its objectives
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Cash-flow
The amounts of money flowing into and out of a business over a period of time
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Price
The amount paid by a consumer to purchase one unit of a product
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Total Revenue, AKA; income, revenue, sales revenue, sales turnover, turnover
The income recieved from an organisation's activities. (total revenue=price per unit x quantity of units sold)
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Profit
The difference between the income of a business and its total costs
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Fixed costs
Costs that do not vary directly with output in the short run (e.g. rent.)
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Variable costs
Costs that vary directly with output in the short run (e.g. raw materials)
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Total costs
The sum of fixed costs and variable costs
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Other cards in this set

Card 2

Front

A qualitative statement of an organisation's aims that uses language to motivate employees and convince those outside the firm of its sincerity and commitment

Back

Mission Statement

Card 3

Front

Goals that must be achieved in order to realise the stated aims of an organisation, department or individual team. Business objectives tend to be medium or long-term. They can be corporate or functional objectives

Back

Preview of the back of card 3

Card 4

Front

Goals of the whole organisation rather than of different elements of the organisation. Set in order to co-ordinate the activities, give a sense of direction to and guide the actions of the whole organisation. Directed by the mission or corporate aims

Back

Preview of the back of card 4

Card 5

Front

Goals of each of the functional areas of business(eg;marketing,finance,HR). They are there to ensure the business achieves its corporate objectives and its overall aims and objectives. Set in order for the same reason as corporate objectives

Back

Preview of the back of card 5
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