Pearson Edexcel International GCSE (9-1) Business - 1 - Business activity and influences on business Exam With Answers

Financial aims and objectives Are linked to money. Their goal is to either make sure the business can afford to keep running or help it to make a profit. Survival Is a very common objective for a small business. Business survival refers to keeping the business operating for a certain amount of time. Most businesses initially aim to survive their first year. Profit Refers to any money left over after all costs have been taken away from any revenue made by a business. Businesses usually aim to make a profit within the first two years. Sales Refer to an amount of a product or service sold by a business. A business will set a target for how much it wants to sell each month and year. This gives the business a target to aim for and a purpose to what its employees do each day. Market share Refers to the percentage of the market that a business occupies. The market is the industry that a business operates in, for example the fast food industry. An example of an objective for market share might be 'to have 5% share of the fast food market within a 100-mile radius in the first 12 months'. Financial security Relates to a business being able to afford to pay off all its costs and have enough cash left to survive. It also relates to an entrepreneur achieving a level of income that will allow them to keep the business operating. Non-financial aims and objectives Are linked to anything other than making money for the business. These are usually linked to personal reasons behind an entrepreneur setting up a business. Social objectives Are linked to doing things in an ethical or environmentally friendly manner, or having a business whose sole purpose is to meet a social need. For example, an entrepreneur may aim to provide only products that are sustainably sourced or use only solar energy to power their business. Personal satisfaction Relates to an entrepreneur feeling satisfaction that they have created a successful business. It may be that an entrepreneur is able to make a business out of a hobby or personal interest. Challenge Relates to an entrepreneur setting up a business with the intention that making it successful will challenge them or take them out of their comfort zone. Control Relates to an entrepreneur's goal of being able to control the business and make decisions about how it is run. These aims and objectives may relate to decisions around what the business sells, where it buys raw materials from, and how much its product or service is sold for. Independence Relates to an entrepreneur working for themselves and running their own business. It is also to do with them making their own key business decisions. A desire for independence is a common re