1.3.1b Non-financial aims and objectives and why they differ Quiz: Pearson Edexcel Business, Unit 3

The 20 questions

1. Which of these is a non-financial aim for a business starting up?

   • Market share of 10% in the local area by the end of the first year
   • Personal satisfaction from doing work that the owner enjoys
   • Profit of £30,000 in the first full year of trading each year
   • Financial security through building a reserve fund of £10,000 over time

2. Which non-financial aim involves giving something back to the community?

   • Social objectives, such as supporting a local charity or environmental project
   • Market share, such as winning a larger part of the local market over time
   • Survival, such as keeping the business trading for its first three years
   • Financial security, such as building a reserve of cash for emergencies

3. Which non-financial aim is most closely linked to the owner's wish to make their own decisions?

   • Market share growth
   • Sales revenue targets
   • Profit maximisation
   • Independence and control

4. Why might a sole trader value a challenge more than financial returns?

   • Taking on new challenges can bring satisfaction and personal growth
   • Challenges remove all the financial risk that comes with starting a business
   • Challenges are required by the government for all sole traders to maintain their licence
   • Challenges always guarantee the business will earn more money than any rival

5. Why do aims and objectives differ between businesses?

   • Businesses differ only in the number of staff they employ at any one time
   • Businesses differ only in the colour of the logo used on their stationery
   • Businesses have different owners, motivations, markets and resources
   • All businesses are required by law to have exactly the same aims and objectives

6. A charity-shop owner wants to help local families while covering running costs. Which aims are being combined?

   • Market share and profit, with no interest in the local community
   • Social objectives alongside a financial aim of covering costs
   • Two financial aims only, with no social element at all
   • Two non-financial aims only, with no need to cover any costs

7. Which of these is a non-financial objective that a firm might measure?

   • Cash balance held in the business's current account each week
   • Customer satisfaction scores from a survey taken each quarter
   • Total revenue generated from sales in the first trading month
   • Operating profit recorded at the end of each financial year

8. A social enterprise aims to employ people who have been out of work. Which type of aim is this?

   • A financial aim focused only on maximising the owner's profit
   • A non-financial social aim
   • A financial aim focused only on increasing market share each year
   • A financial aim focused only on the amount of cash in the bank

9. Why might a business owner prioritise personal satisfaction over profit?

   • They may value the work itself more than the money it earns
   • Personal satisfaction is required by law for all businesses to prioritise
   • Personal satisfaction is always guaranteed to bring a higher profit than any other aim
   • Personal satisfaction removes the need for the business to earn any revenue

10. Which of these is an example of a non-financial aim related to independence?

    • Achieving a 20% share of the local market within the first two years
    • Running a business without having to answer to a boss or external investors
    • Doubling the firm's sales within three years of its first trading year
    • Reaching a profit of £50,000 in the business's third full financial year

11. Which of these is the most likely non-financial aim for a business owner who wants to set their own schedule?

    • Market share growth from opening several new branches in the region
    • Sales volume growth from selling more products through online channels
    • Profit growth from increasing prices to the highest level the market will bear
    • Independence and control over working hours and decisions

12. Why might a business owner's non-financial aims affect the business's financial decisions?

    • They may accept lower profits in order to keep control or serve a social purpose
    • They mean the business must always pay the highest possible wages to staff
    • They remove the need for any financial planning in the business at all
    • They always guarantee that the business will earn more money than any rival firm

13. A business aims to employ local young people as part of its mission. Which kind of aim is this?

    • A sales volume objective
    • A social objective
    • A cash flow objective
    • A market share objective

14. Which of these is a valid reason why aims and objectives differ between businesses?

    • Some owners prioritise survival while others prioritise social or personal goals
    • Every business is forced to set exactly the same aims by its industry body
    • Businesses never differ in their aims because all of them want the same profit
    • Businesses only differ in their aims when they are based in different countries

15. Which of these is a social objective a business might set?

    • Building its cash reserves to cover three months of running costs
    • Achieving a profit of £40,000 in the second year of trading each year
    • Reducing the firm's carbon footprint across its supply chain over five years
    • Increasing its market share in the local area by ten percentage points

16. A sole trader values the flexibility of working from home. Which non-financial aim does this reflect?

    • Profit growth through higher prices charged to loyal customers
    • Sales volume increases through a new online shop each month
    • Market share growth in the local area over the coming year
    • Personal satisfaction and control over working life

17. Why might a business owner choose a non-financial aim over a larger profit?

    • Non-financial aims are required by law for all businesses in every sector
    • Non-financial aims mean the business does not need to earn any revenue at all
    • Non-financial aims always produce higher profits than financial aims do
    • They may value independence or a social purpose more than maximising earnings

18. Which non-financial aim links to a business wanting to be its own boss?

    • Market share growth
    • Independence and control
    • Profit maximisation
    • Sales revenue growth

19. A business aims to offer apprenticeships to young people in its town. Which kind of objective is this?

    • A financial objective focused on the total revenue from its products
    • A financial objective focused on the firm's share price on the market
    • A social objective
    • A financial objective focused on the cash balance at the year end

20. Which of these explains why aims differ between businesses?

    • Every business in the same industry must legally adopt identical aims and objectives
    • Businesses never differ in aims because all of them want to maximise profit
    • Businesses differ only because of the number of computers they use in the office
    • Owners have different motivations, such as profit, independence or community benefit

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