Lesson 3.7.1.1

3.7.1.1 Mission, corporate objectives and functional objectives Quiz: AQA Business, Unit 7

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.7.1.1, Mission, corporate objectives and functional objectives: 20 multiple choice questions for the AQA Business (7132), Unit 7: Analysing the strategic position of a business, written with Revision Ninja.

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The 20 questions

  1. Which statement best describes a business mission?

    • A forecast of the cash that the business expects to receive and pay out during the coming financial year
    • A list of short-term sales targets that are reviewed by the sales team each month to track weekly progress
    • A legal document that sets out the structure, share capital and registered address of the company for filing
    • A statement of the organisation's overall purpose, values and reason for existing

  2. Corporate objectives are best described as:

    • The values and standards of behaviour written into the business's code of conduct for all of its employees
    • Daily tasks that front-line staff carry out to keep the business running smoothly from one shift to the next
    • Targets set for individual departments, such as marketing, finance or human resources, to guide their daily work
    • Long-term goals set for the whole business, such as growth or profit targets for the organisation as a whole

  3. Functional objectives are:

    • Overall goals for the whole organisation that are set by the board of directors at the annual planning meeting
    • Targets set for departments such as marketing, finance, operations and human resources to support corporate goals
    • The broad purpose of a business as stated in its mission statement and shared with customers and staff
    • The short-term actions that a business takes to respond to competitors and changes in market conditions

  4. Which of the following is an external influence on corporate objectives?

    • The company's own policy on staff training, which is set by the human resources department
    • Competitor actions that change market conditions and the level of competition a business faces
    • The skills and experience held by the existing workforce, which shape what the business can achieve
    • The personal ambitions of the managing director, who sets the strategic direction for the whole firm

  5. What is meant by short termism as an influence on corporate objectives?

    • A method of forecasting sales using only the last three months of data, with no allowance for seasonal trends
    • A focus on quick results and short-term profits at the expense of long-term development and investment
    • A decision to close the business after a short period of trading if it does not reach its first target
    • A policy of keeping every investment project under one year in length to reduce financial risk

  6. A family-owned firm chooses to grow slowly to protect its independence. Which influence on objectives does this best illustrate?

    • Business ownership
    • Currency movements
    • Competitor pricing
    • Government regulation

  7. Which sequence correctly shows how strategy follows from a business's mission?

    • Strategy, then tactics, then mission, then corporate objectives, with functional objectives set last of all
    • Functional objectives, then mission, then tactics, then strategy, which are reviewed together at the year end
    • Mission, then corporate objectives, then strategy, then functional objectives and tactics
    • Tactics, then strategy, then mission, then corporate objectives, and finally functional objectives set by the board

  8. A business's profit rises from 2.4 million pounds to 2.88 million pounds. What is the percentage increase in profit?

    • 20%
    • 480%
    • 15%
    • 25%

  9. A market has 50 million units of annual sales. A firm holds 12% share and aims for 15% share next year. How many extra units must it sell if the market size stays the same?

    • 3,000,000 units
    • 750,000 units
    • 1,500,000 units
    • 6,000,000 units

  10. A charity's mission is to provide clean water to rural communities. Which corporate objective best fits this mission?

    • Increase the number of staff working in the head office so that administration can be expanded across the region
    • Raise 500,000 pounds for water projects in rural areas within five years, measured by the number of wells built
    • Open a chain of cafes in city centres to raise funds through retail sales and build public awareness
    • Reduce the cost of office stationery by 10% this year through a new supplier and bulk ordering scheme

  11. A firm sets a corporate objective to enter export markets. Which functional objective best supports this?

    • Cut the training budget for the production team to free up money for home-market advertising campaigns
    • Reduce the number of staff in the accounts department to cut the total cost of administration this year
    • Develop international pricing and promotion strategies that suit overseas customers and local regulations
    • Stop all advertising in the home market so that spending can be focused on the wider export programme

  12. A plc's directors focus on quarterly share price to satisfy shareholders. Which influence on objectives does this illustrate?

    • A fall in population growth that reduces the number of consumers who buy shares in listed companies
    • A new piece of employment law that requires firms to publish their quarterly share price results to staff
    • Pressure from business ownership, which can encourage short-term thinking over long-term investment decisions
    • A change in exchange rates that makes imports cheaper and reduces the price of raw materials for the firm

  13. A business has a target of 1.2 million pounds of sales at a selling price of 40 pounds per unit. How many units must be sold?

    • 30,000 units
    • 48,000 units
    • 3,000 units
    • 12,000 units

  14. A business with a mission to be the lowest-cost supplier plans to grow sales through price cuts. Which evaluation is most appropriate?

    • Price cuts always guarantee higher profit because volume rises in every market the business serves in future years
    • The mission is irrelevant to pricing decisions because a firm's prices never affect its corporate objectives in any way
    • Price cuts can gain volume, but a low-cost position depends on sustained cost control, and margins may fall if rivals match prices
    • Growth through price cuts is impossible in any competitive market because rivals will always undercut every price change

  15. Why can functional objectives sometimes conflict with one another?

    • Departments are not allowed to set objectives under the company's internal policy, so each one reports to a different manager
    • Functional objectives are always identical across departments, so conflicts can only arise from clerical errors in planning
    • Departments may pursue targets that compete for the same budget, staff time or resources, such as range breadth against standardisation
    • Conflicts only occur when the mission statement is changed, because functional objectives are then left unchanged

  16. Evaluate the argument that short-termism is always harmful to a business.

    • It is always harmful because investors never value short-term profits, and so every firm that pursues them will eventually fail completely
    • It is never harmful because long-term plans do not matter to any firm, since markets change too quickly to plan for years ahead
    • It only affects businesses that are listed on a stock exchange, because private firms are never judged on their short-term results
    • It can weaken research and investment, but short-term results may be vital for survival when cash is tight, so context matters

  17. A business's mission is to be a sustainable food producer. Which tension is most likely when setting corporate objectives?

    • Financial objectives can never be set alongside a mission statement, because the two are legally required to be kept separate
    • Environmental targets always increase profit immediately with no trade-off, so the mission and financial goals always agree in practice
    • Sustainability has no link with food producers' objectives, so the mission has no effect on decisions made by managers
    • Environmental targets may raise costs and reduce short-term profit, creating a trade-off with financial corporate objectives

  18. Which evaluation is most accurate about a mission statement?

    • It gives direction, but it has little value unless it is turned into measurable corporate and functional objectives and a strategy
    • It is only needed by businesses that are legally required to publish one, so most firms can safely ignore it entirely
    • It replaces the need for a business strategy or financial plan because the mission already sets out what to do
    • It guarantees success because every employee reads it every day and so decisions are always made in line with it

  19. Which of these is an internal influence on functional objectives?

    • The pricing decisions made by rival firms operating in the same market sector
    • A new trade agreement signed between two foreign governments last year
    • Changes in the level of interest rates set by the central bank each quarter
    • The skills and experience of the existing workforce in each department

  20. A business's mission is to be the UK's most trusted brand for healthy snacks. Which is the best example of a corporate objective that follows from this?

    • Raise the share of customers who rate the brand as trusted to 60% within three years
    • Change the colour of the packaging to bright yellow to attract younger shoppers in supermarkets
    • Reduce the price of the most popular snack by ten pence during the next promotional period
    • Hire twenty extra staff for the customer service department before the next summer season begins

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