Question

Explain any three economic objectives of business.

Answer 1

Three economic objectives of business are :

(i) Profit motive : The main motive of every business activity is to earn money in the form of profit and any activity which result in earning money and creation of wealth is considered as an economic activity.

(ii) Creation of utility : Business activity results in creation of utilities. Businessmen create three types of utilities such as form utility, time utility and place utility.

(iii) Exchange of goods and services : Economic activities aim at earning by exchange of goods and services similarly, business activities results in sale, distribution or exchange of goods and services for earning a profit.