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Learning objective

Explain why businesses exist and why they set objectives such as profit, growth, survival, cash flow and social or ethical objectives.

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Topic

Understanding the nature and purpose of business

Subtopic

Business purpose and objectives

Aqa A Level BusinessWhat is business?

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Quick explanation

Explain why businesses exist and why they set objectives such as profit, growth, survival, cash flow and social or ethical objectives

  • This point belongs to Understanding the nature and purpose of business, especially Business purpose and objectives.
  • You need to be able to explain why businesses exist and why they set objectives such as profit, growth, survival, cash flow and social or ethical objectives.
  • The key ideas to know are cash flow, profit, and survival.
  • Use the linked flashcards and practice questions to check recall, then practise applying the idea in an exam-style answer.

Key concepts

cash flowprofitsurvivalgrowth

Why it matters

This objective helps connect Business purpose and objectives to exam-style questions, flashcards, and revision notes for Understanding the nature and purpose of business.

Quick student answer

What should an business answer explain about businesses exist and why they set objectives such as profit, growth, survival, cash flow and social or ethical objectives?

Direct answer

For Business, this page helps you revise businesses exist and why they set objectives such as profit, growth, survival, cash flow and social or ethical objectives in Understanding the nature and purpose of business. Focus on the key terms, the exam command, and a clear answer that matches the question. Key terms to check are financial decision-making and Business purpose and objectives.

Key terms

  • financial decision-making: financial decision-making is a Business concept used to analyse Explain why businesses exist and why they set objectives such as profit, growth, survival, cash flow and social or ethical objectives.. A strong answer defines it, applies it to a named business context and explains the commercial consequence.
  • Business purpose and objectives: Business purpose and objectives should be judged by linking it to objectives such as profit, survival, growth, competitiveness, efficiency or customer satisfaction.
  • profit: profit affects stakeholders differently, so analysis should consider owners, managers, employees, customers, suppliers or investors before reaching a judgement.

Common trap

Business purpose and objectives common mistake 1: Show the method first, then give the final answer in the required form. Apply this directly to Business purpose and objectives.

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