Project Management Institute (PMI) Professional in Business Analysis Practice Exam

Which of the following best describes a business objective?

1. A broad statement of purpose for an organization

2. A specific and measurable goal aligned with organizational objectives

3. A qualitative assessment of business success

4. A summary of past business performance

The correct answer is: A specific and measurable goal aligned with organizational objectives

A business objective is best described as a specific and measurable goal aligned with organizational objectives. This definition emphasizes the importance of specificity and measurability in setting business objectives. Objectives should outline clear targets that an organization aims to achieve within a defined timeframe, allowing for tracking progress and evaluating success. By being measurable, business objectives provide a means to assess whether the desired outcomes have been achieved. They serve as a guide for decision-making and resource allocation while ensuring that efforts are aligned not just with mission statements or broad aspirations but also with strategic priorities and actionable plans. In contrast, other options provided do not capture the essence of a business objective as effectively. A broad statement of purpose, while important, lacks the specific and measurable aspect that defines a true business objective. Qualitative assessments of business success might inform future objectives but do not encapsulate what an objective actually is. Finally, summarizing past business performance is more about reflecting on what has already occurred rather than setting goals for what needs to be achieved going forward. Thus, the emphasis on specificity and alignment in option B makes it the most accurate description of a business objective.