Objectives of Business
Profit earning: Profit is the amount of a business’s revenue over expenditure. Profit earning is the prime motive of every organization as it ensures the survival and growth of the business. Even though profit is essential for a business, it can’t be the sole motive of a business.
Innovation: To attain success and growth, it is essential for a business to innovate. Innovation can be done by making new products or making better changes, or adding new features to the existing products. It helps a business in improving its production and distribution methods and explore new markets. In the present world, innovation is essential for every business to compete with other businesses and remain in the market.
Market standing: Another important objective of any business is market standing which can be attained by providing goods and services to its customers to meet their needs and wants. By doing so, a business can maintain a market standing, attain goodwill, and survive for a long time.
Social responsibility: Besides economic objectives, there are some social obligations that a business has to follow, also known as social responsibility. Simply put, social responsibility means contributing business resources to solve social problems and work in a socially desired manner.
Productivity/optimum utilization of resources: The next objective of a business is optimum utilization of resources and productivity. It means that a business has to use its inputs or resources like money, material, labor, machinery, land, etc., in the best possible and optimum manner so as to achieve maximum result or output in return.
Physical and Financial resources: For the production and sale of goods and services, a business requires some physical and financial resources. Physical resources consist of plant, machinery, land, labor, etc. However, financial resources consist of the funds or money to run and operate the business for the production and distribution of goods and services. Therefore, acquiring the required financial and physical resources is an objective of a business.
Quality goods and services at a fair price: It is another social objective of a business that aims at providing better quality goods and services to the customer at a reasonable price. For example, providing goods with ISI mark on electrical goods, Hallmark on jewelry, etc.
Workers Development: Human beings are the most important resource of a business, and their development is one of the most crucial objectives. It includes providing equal opportunities to all irrespective of caste, creed, religion, etc., proper remuneration, medical, entertainment, training, and welfare facilities to its employees....