Business Objectives

4. An objective to expand the business, which can be organic (internal) or inorganic (external).
5. Achieving a "good enough" level of profit or performance rather than maximizing it. This often happens because of the principal-agent problem, where managers balance owner needs with their own interests.
7. Profit above normal profit.
11. Resources are allocated to maximize utility.
12. Occurs where marginal revenue is zero. Often pursued to increase market share or by managers seeking higher commissions.

1. A broad statement of a business’s purpose, which often sets the context for specific, shorter-term objectives.
2. Producing at the lowest point on the average cost curve.
3. Increasing the proportion of the market, allowing the firm to gain more control over prices and suppliers.
5. A key objective, especially during recessions or for new, smaller firms facing intense competition.
6. The minimum level of profit required to keep a firm in its current market.
8. Minimizing expenses to improve efficiency or gain a competitive advantage, often achieved through outsourcing or economies of scale.
9. Occurs where average cost equals average revenue, or breaking even. Used to gain market share, clear stock, or deter new entrants.
10. The main goal where marginal cost equals marginal revenue. High profits increase dividends and share price, but might attract regulatory attention.