Mission Objectives, Decisions and Performance (AQA A-Level Business): Quizzes

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Mission Objectives, Decisions and Performance
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What happens to share prices when investors expect a company to perform well financially?

Share prices increase

What is the formula for calculating market capitalisation?

Share price × number of shares

A company has a share price of 50p and 1,000 million shares. What is its market capitalisation?

£500 million

How does world uncertainty affect share prices?

Makes them volatile & fluctuate

What two things motivate PLC shareholders who focus on profit?

Dividends & capital gains

Compared to PLCs, what advantage do sole traders have regarding their mission statement?

They can maintain closer focus on it

Which best describes the external environment that businesses operate within?

Unpredictable & uncertain

What problem can arise when PLCs focus excessively on short-term profits?

Poor decision-making can occur

What happened to Tesco's share price when shoppers moved to Lidl and Aldi?

It was negatively affected

What does market capitalisation measure?

A company's total value per stock market

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