Business objectives: Practice Questions

Which of the following is a non-financial objective for a business owner?

A sole trader decides to expand their business specifically to prove they can succeed in a competitive environment. Which non-financial objective does this most likely represent?

A previously successful high-street bank decides to close \(50\%\) of its physical branches to invest heavily in a new mobile banking app. This shift in objective is most likely a response to:

Which financial objective is most concerned with the long-term ability of a business to pay its costs and stay in operation?

A business owner prioritizes independence and control. Which of the following decisions is most consistent with this non-financial objective?

Explain the difference between survival and profit as business objectives for a new start-up enterprise.

A business has seen its revenue grow by \( 15\% \) while its total costs have increased by \( 25\% \). Explain why this business might change its objective from sales growth to profit maximization.

Identify one non-financial objective an entrepreneur might have and describe how it provides personal satisfaction.

A small independent clothing retailer has operated successfully in a local town for \( 5 \) years. Recently, a large international fashion chain opened a store nearby.

(a) Define the term survival as a business objective.
(b) Explain two reasons why the clothing retailer's objectives might change from 'profit' to 'survival' due to the arrival of the new competitor.

An entrepreneur is deciding whether to set up a business as a traditional private limited company with a focus on profit or as a social enterprise with social objectives.

Discuss the potential conflicts that might arise for a business owner when trying to achieve both financial security and social objectives. In your answer, you should consider how the prioritization of these goals affects decision-making and the allocation of surplus funds.