Business objectives

Two bakeries have different objectives.

What is a likely reason for this?

A Both bakeries use market segmentation

B It is illegal for food producers to set identical objectives

C One bakery makes bread and the other makes cakes

D The same entrepreneur owns both bakeries

A business whose main objective is ‘growth’ is likely to be:

A considering reducing the size of its workforce

B having difficulty keeping up with demand

C struggling to stay in existence

D trying to gain new customers

An ‘established business’ is a business that:

A has a good reputation

B has been operating for a long time

C is enterprising and creative

D is owned by more than one person

A business has recently changed its main objective from ‘survival’ to ‘growth’.

What would most likely explain this change of objective?

A The business has become too big

B The business has reduced its productivity

C The business is experiencing high demand

D The business needs to lower its costs

Firms A and B both operate in the same industry.

• Firm A’s objective is to make a profit

• Firm B’s objective is survival.

What would explain this difference in objectives?

A Firm A has a low market share and Firm B has a high market share

B Firm B is a start‑up business and Firm A is an established business

C The owners of Firm A have less determination than the owners of Firm B

D The owners of Firm B are more confident than the owners of Firm A

Alex, a sole trader, opened a hair salon three years ago. He has recently changed the main objective of the business from ‘profit’ to ‘survival’.

What would explain this change of objective?

A The hair salon has already achieved its profit objective

B The hair salon has gained a lot of new customers

C The hair salon is experiencing intense competition

D The hair salon is now an established business

Two clothing manufacturers have different objectives.

Which of the following is not a possible reason why the two businesses have different objectives?

A One business makes coats and the other makes jeans

B Only one of the businesses makes designer clothing

C There is little innovation in the clothing industry

D They have different owners