a formal summary of the aims and values of a company, organization, or individual.
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What are corporate objectives?
A well defined and realistic goal set by a company that often influences its internal strategic decisions
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What are functional objectives?
Functional objectives are those that relate to the specific functions of a business (e.g. marketing, operations, HRM, finance) and which are designed to support the achievement of corporate objectives.
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Why do businesses need to set objectives?
To set a clear idea of what needs to be done to achieve what is expected of the business.
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How do you calculate profit?
Sales Revenue- Total Costs
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Difference between fixed and variable costs?
Variable costs vary and change with level of output, fixed do not change.
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How do you calculate revenue?
Sales price x Number of product sold
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Difference between private and public sector
The public sector consists of organizations that are owned and operated by the government, while the private sector consists of organizations that are privately owned and that do not form part of the government.
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What are the main business forms?
Sole Trader, Partnership, Social Enterprise/ Not-for-profit
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What is unlimited liability? Which business forms have this?
Unlimited liability is when a business and its owner/s are seen as legally equal so the owner/s can lose personal posessions.
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What is ordinary share capital?
Ordinary share capital refers to shares that are issued by a company that allow shareholders voting rights within a corporation.
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What is market capitalisation?
Share price x Number of shares sold
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Where are dividends paid from?
From a distribution of profit
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Why do shareholders invest?
They invest because they believe in the business and also to gain their investment and more back.
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What are the roles of shareholders?
Financing, Operations, Governance and Control
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What factors influence share prices?
Demand, Competition, Sales Revenue, Market Share, Media
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