Business Studies Answers #

1. Business objectives are the goals or aims that a business seeks to achieve.
2. Five common business objectives are: profit, growth, survival, adding value, and providing a service.
3. In a business context, profit is the financial gain made when revenue exceeds costs.
4. Adding value benefits a business by allowing it to charge higher prices, attract more customers, and differentiate itself from competitors.
5. Value added is the difference between the price of a product and the cost of the inputs used to produce it.
6. Business growth is important because it can lead to higher profits, job creation, and economies of scale.
7. A business can achieve growth by increasing sales, expanding into new markets, or developing new products or services.
8. Economies of scale are the cost advantages that a business can exploit by expanding their scale of production.
9. Survival is a key objective for startups because they face high risks and often have limited resources to withstand losses.
10. If a business fails, the owners can lose their invested capital and may have to pay off outstanding debts.
11. A government-run business might prioritize service over profit because its primary goal is to meet public needs rather than maximize financial returns.
12. Stakeholders are individuals or groups that have an interest in a business and can affect or be affected by its actions.
13. Financial stakeholders primarily seek financial returns from the business, while non-financial stakeholders are more interested in other forms of value the business provides.
14. Three examples of financial stakeholders are: owners, employees, and managers.
15. The main objectives of business owners are to earn a return on their investment and to see the value of their stake grow over time.
16. In addition to wages, employees also seek job security and satisfaction from their work.
17. Managers value power and status because these enhance their authority and influence within the organization.
18. Three examples of non-financial stakeholders are: customers, government, and local community.
19. Customers expect businesses to offer quality products, good value for money, and reliable post-purchase support.
20. A business can benefit its local community by providing employment, supporting local causes, paying taxes, and being environmentally and socially responsible.