IGCSE CIE BUSINESS STUDIES 1.5 BUSINESS
OBJECTIVES AND STAKEHOLDER
OBJECTIVES QUESTIONS WITH ALL
CORRECT & VERIFIED ANSWERS
Business objectives Correct answer-Aims or targets that a business works towards
Importance of business objectives Correct answer--give workers and managers a clear target to
work towards
-motivates workers
-guide decision making
-managers can compare how the business is performing to the objectives
Different business objectives Correct answer-Business survival, Growth, Profit, Returns to
shareholders, Market share
Market share Correct answer-Percentage of total market sales held by one brand or business
formula:
Market share%=(Company sales/Total market sales)*100
Objectives of social enterprises Correct answer--Social- provide jobs and support to disadvantaged
groups
-Environmental- protect the environment
-Financial- make profit to invest back into social enterprise
Social enterprise Correct answer-Social objectives that aim to make a profit to reinvest back into
the business
Stakeholder Correct answer-Person or group that has an interest in the performance and activities
of a business
Internal stakeholders & examples and their objectives Correct answer-Person or group that work
for or owns the business e.g.
-Owners: risk takers and invest capital into the business
obj: profit maximisation and business growth
-Workers: people involved in the business
obj: employee contract, regular payment, job satisfaction
-Managers: control work of other workers
obj: job security, higher salaries than other workers, business growth
External stakeholders & example and their objectives Correct answer-People or groups that are
outside the business e.g.
-Customers: purchase and consume goods and services
obj: price reflecting quality, reliable and safe
-Governments: protect workers and customers from business' activities
obj: increase total output, increase employment, increase government revenue
-Banks: provide financial help to businesses
obj: expect the business to pay interest and repay capital lent
OBJECTIVES AND STAKEHOLDER
OBJECTIVES QUESTIONS WITH ALL
CORRECT & VERIFIED ANSWERS
Business objectives Correct answer-Aims or targets that a business works towards
Importance of business objectives Correct answer--give workers and managers a clear target to
work towards
-motivates workers
-guide decision making
-managers can compare how the business is performing to the objectives
Different business objectives Correct answer-Business survival, Growth, Profit, Returns to
shareholders, Market share
Market share Correct answer-Percentage of total market sales held by one brand or business
formula:
Market share%=(Company sales/Total market sales)*100
Objectives of social enterprises Correct answer--Social- provide jobs and support to disadvantaged
groups
-Environmental- protect the environment
-Financial- make profit to invest back into social enterprise
Social enterprise Correct answer-Social objectives that aim to make a profit to reinvest back into
the business
Stakeholder Correct answer-Person or group that has an interest in the performance and activities
of a business
Internal stakeholders & examples and their objectives Correct answer-Person or group that work
for or owns the business e.g.
-Owners: risk takers and invest capital into the business
obj: profit maximisation and business growth
-Workers: people involved in the business
obj: employee contract, regular payment, job satisfaction
-Managers: control work of other workers
obj: job security, higher salaries than other workers, business growth
External stakeholders & example and their objectives Correct answer-People or groups that are
outside the business e.g.
-Customers: purchase and consume goods and services
obj: price reflecting quality, reliable and safe
-Governments: protect workers and customers from business' activities
obj: increase total output, increase employment, increase government revenue
-Banks: provide financial help to businesses
obj: expect the business to pay interest and repay capital lent
