Objectives of Business

1. Explain the importance of national objectives of business

Ans-

It is generally believed that a business has a single objective that is to make profit. But it is not the only objective of business while pursuing the objective of profit, a business unit no doubt keeps the interests of its owners in view. However, it cannot ignore the interests of its employees, customers, the community as well as the interests of society as a whole.

For instance no business can prosper in the long run unless fair wages are paid to the employees or if customer satisfaction is not given due importance. Again a business unit can prosper only if it enjoys the support and goodwill of people in general

Objectives of business can be grouped under the following broad categories:

· Economic Objectives

· Social Objectives

· Human Objectives

· National Objectives

When any business activity is undertaken there is always some purpose behind it. Without a purpose, no human activity can be fruitful. an objective denotes a goal for the achievement of which efforts are directed. Business is an economic activity undertaken to earn money and satisfy wants however it cannot be carried out in isolation from society, hence besides economic objectives businessmen have to keep in mind other objectives like Social Objectives, Human Objectives & National Objectives as well.

a) Economic Objectives-Economic objectives of business refer to earning profits through business activities. In fact profit-making is the primary goal for which a business unit is brought into existence. Profit is the acid test of every business If there is no profit, no business activity can exist for long. Profits help businessmen not only to earn their living but also to expand their business activities by reinvesting a part of the profits.The owners expect a fair return on the capital they invest in business. Earning of profit can be made when exchange of goods takes place Profits must be earned to ensure...