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Paper 1 · Business Objectives

Businesses set objectives mainly because objectives

Agive direction and a target to measure performance against
Breduce the amount of tax the business has to pay
Cfix the price at which the business must sell goods
Ddecide how many hours each employee is allowed to work each week
Explanation: An objective tells everyone in the business what it is trying to achieve, so departments pull the same way and staff know what is expected. It also gives a yardstick: without a stated target there is nothing to compare actual results against, and control becomes guesswork. Tax, prices and hours are settled elsewhere.

Derived from ZIMSEC Business Enterprise Skills Paper 1, Specimen Paper (edition B), Q1

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