Study resource
Setting business aims and objectives common mistakes
Study Setting business aims and objectives with curriculum-aligned Common Mistakes resources, practice links, and exam-focused support.
At a glance
common mistakes
Resource type
Topic
Setting business aims and objectives
Common mistakes
Confusing market share with market size
Thinking that market share is the same as the total market size.
Fix itMarket size is the total sales volume of the market; market share is the proportion of that volume captured by a firm.
Confusing aims with objectives
Treating aims as specific, measurable objectives.
Fix itAims are broad statements of purpose, while objectives are detailed, measurable targets that can be tracked.
Confusing revenue with profit
I think revenue equals profit.
Fix itRevenue is the total sales income before costs; profit is revenue minus all costs.
Assuming objectives never change
Thinking that objectives set at the start‑up stage remain fixed for the life of the business.
Fix itExplain that objectives evolve as the business gains resources, enters new markets, and faces new stakeholder demands.
Confusing profit with cash flow
Assuming that profit equals cash flow.
Fix itProfit is the accounting surplus after costs; cash flow is the actual movement of cash in and out, which can differ due to timing of receipts and payments.
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