Taken from google analytics blog:

"Goals (with a capital G) are a way to measure business objectives for your website in Google Analytics. Goals must correspond to a measurable action performed by your website's visitors, for example, a visit to a "thank you" page. This combination of a business objective and a measurable action make up a Goal."

Basically, it's your target of what the audience of your website would do/had done (and how much you had achieved it).

For more information about the goal / setting your goals, you can visit the source below:
Source(s):
http://analytics.blogspot.com/2009/05/how-to-setup-goals-in-google-analytic...
http://www.e-nor.com/blog/index.php/web-analytics/tracking-e-mail-clicks-ac...
http://www.epikone.com/blog/2007/07/07/google-analytics-goals/
http://www.youtube.com/watch?v=IibCs23EuiE&feature=related


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