Deck 2: Mission and Objectives

Question 1

A mission sets out specific targets for the business to achieve

Answer 1

False

Question 2

An objective is a specific target for a business to achieve

Answer 2

True

Question 3

Profit is measured by

A) Revenue plus costs
B) Costs multiplied by revenue
C) Revenue minus costs
D) Price multiplied by quantity

Answer 3

c

Question 4

The return on investment

A) Measures liquidity
B) Is measured in £
C) Is measured as a percentage
D) Is always a forecast.

Question 5

A company is owned by shareholders.

Question 6

Dividends are the rewards paid out to shareholders

Question 7

Profit maximisation occurs when total revenue equals total costs

Question 8

If marginal revenue is positive

A) Total revenue is constant
B) Total revenue falls
C) Total revenue increases
D) Profits increase

Question 9

If marginal revenue is zero

A) Total revenue is constant
B) Total revenue falls
C) Total revenue increases
D) Profits increase

Question 10

Satisficing occurs when investors are satisfied by the maximum level of profits

Question 11

Corporate Social Responsibility means

A) A business has a responsibility to make a profit
B) A business accepts a responsibility to be a corporate citizen
C) A business accepts a responsibility to be a behave legally
D) A business accepts a responsibility not to make a profit