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Key Business Objectives Explained

Managers must protect shareholder value to ensure the company remains financially viable and shareholders receive a return. Businesses pursue profit as a core objective to remain in operation and provide financial returns to owners. Growth is also a key objective as it allows businesses to expand operations, gain economies of scale, and increase profits and market share over time. While private businesses focus on objectives like profit and growth, public sector entities have additional objectives around providing services and operating for public benefit rather than private gain.

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98 views1 page

Key Business Objectives Explained

Managers must protect shareholder value to ensure the company remains financially viable and shareholders receive a return. Businesses pursue profit as a core objective to remain in operation and provide financial returns to owners. Growth is also a key objective as it allows businesses to expand operations, gain economies of scale, and increase profits and market share over time. While private businesses focus on objectives like profit and growth, public sector entities have additional objectives around providing services and operating for public benefit rather than private gain.

Uploaded by

jhjhjhjh
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

BUSINESS OBJECTIVES ASSIGNMENT

1.
(a) Explain one reason why it is important for managers to protect shareholder value. [2]
(b) Explain two reasons why profit is a common objective of private sector businesses. [4]
(c) Analyse two reasons why a business may set growth as an objective. [4]
(d) Compare and contrast how private sector and public sector objectives may differ. [6]

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