Business objectives (OCR A-Level Economics): Flashcards
📚Flashcards
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13 cards from this deck
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Practise the cards
13 cards from this deck
Profit maximisation occurs when
Profit maximisation occurs when
Sales revenue maximisation occurs when
Sales revenue maximisation occurs when
Sales volume maximisation focuses on
Sales volume maximisation focuses on
Quantity of goods sold
Growth maximisation aims for
Growth maximisation aims for
Fastest growth in size, revenue, or market share
Utility maximisation achieved when
Utility maximisation achieved when
Marginal utility per unit of currency spent is equal across all goods
Profit satisficing means
Profit satisficing means
Achieving satisfactory profit rather than maximum
Social welfare refers to
Social welfare refers to
Well-being of society as a whole
CSR involves actions that go beyond
CSR involves actions that go beyond
Legal requirements
Principal-agent problem is
Principal-agent problem is
Conflict of interest between principal and agent
Asymmetric info means agent has
Asymmetric info means agent has
More info about their actions than principal
Mechanisms to align incentives include
Mechanisms to align incentives include
Performance-based pay, monitoring, contracts
Principal-agent example: shareholders are
Principal-agent example: shareholders are
Principals, managers are agents
Profit maximisation definition
Profit maximisation definition
Price & output level that returns greatest profit