Question

Which of the following cannot be classified as an objective of business?

(a) Investment

(b) Productivity

(c) Innovation

(d) Profit earning

Answer 1

Investment is not an objective of business. Rather, it is a basic requirement of every business. It is the profit motive that serves as the sole objective of every business activity. Business enterprises also need to improve their productivity and engage in research and development activities for innovating new products to be able to sustain themselves in the market. Thus, increasing productivity, innovating and earning a profit are objectives of business. However, investment cannot be considered as a business objective.

Hence, the correct answer is option (a).