Business Aim
a broad goal that a business wants to achieve in long term
aim
Money coming in
Revenue
To make a number or amount larger.
increase
A new business wants to stay open. What objective is this?
Survival
🍔 McDonald's wants to sell more burgers.
Which objective?
Increase sales
a specific and measurable target that helps a business achieve
Objective
Money going out
Cost
To make a number or amount smaller.
A business wants to make more money after paying its costs.
Profit
👟 Nike wants more people to buy Nike shoes instead of Adidas shoes.
What might Nike want to increase?
Market share
staying open and continuing to operate, especially during difficult times
Survival
A shop sells 10 T-shirts. This is its...
Sales
Sales go from 100 → 150.
Increase or reduce?
Increase
A business wants more customers and more products sold.
Increase sales
🧋 A new bubble tea shop is losing money but wants to stay open.
Which objective is most important?
Survival
the money left after all business costs have been deducted from revenue
Profit
A business has revenue of $50,000 and total costs of $35,000. What is its profit?
$15,000
Costs go from $5,000 → $4,000.
Increase or reduce?
Reduce
A business wants to become a bigger part of its market.
Increase market share
🎮 A game company makes $10,000 but spends $7,000.
What is its profit?
$3,000
the percentage of total market sales made by a particular business.
Market share
A business has revenue of $170,000 and costs of $120,000. Is it making a profit or a loss?
profit
A business wants to make more profit. Should it increase revenue or reduce unnecessary costs?
both
Why might a new business care about survival more than profit?
Because it needs to stay open and cover its basic costs first.
🍕 A pizza shop earns $5,000 and spends exactly $5,000.
The owner says, “We made $5,000 profit!”
Is she correct?
No! They reached break-even.