Tuesday, July 6, 2010

OBJECTIVES OF BUSINESS


Business is a very important economic activity. The success of any activity depends on definite objectives. So, it is necessary to have definite objective for it, to perform successfully. The objectives are goals where all efforts are concentrated for fulfillment of the objectives.
The main objective of business is to earn profit. It makes continuity in the business. It also measures the success of business. No business can continue for long if it ignores public service. So earning profit and public services are the main objective of business. However, the objective of business may be broadly categorized under the following heads.
1. Economic objectives:
Business is basically an economic activities, its primary objective is to earn profit. The economic objective of a business is to earn sufficient profit to give reasonable reward to the investors of capital and to provide funds for expansion and diversification. The main economic objective of business may be described as under.
a. Earning profit
b. Production of goods
c. Creation of market
d. Technological improvements

2. Social objectives:
Since business operates in society it cannot survive and grow unless it meets
the needs of society. For the survival of any business, social objectives are essential. Profit should be earned along with service and the concept does minimize the important of profit. The philosophy of running a business should be in tune with what is considered right by the society. Some of social objectives of business are:
a. Providing goods
b. Supply of quality goods
c. Proper price
d. Providing employment
e. Utilization of scarce resources

3. human objectives:
Business activities can be conducted only through the medium of human being working as individual or group in organizations. If the human factor is overlooked, it will be difficult to achieve its objectives. Human objectives of business require that a workable balance should be maintained among the claims of various interested groups like employees, shareholders and consumers.
Some of important human objectives are:
a. Welfare of employees
b. Satisfaction of consumers
c. Satisfaction of shareholders

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Business

Business Business:Economic system in which goods and services are exchanged for one another or money, on the basis of their perceived worth. Every business requires some form of investment and a sufficient number of customers to whom its output can be sold at profit on a consistent basis.