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Question
Why does business need multiple objective? Explain any five such objectives.
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Solution
- It is generally believed that profit earning is the primary objective of business. However, as per modem thinking, business needs to have several objectives. Consistent and sustainable profit can be earned only if the business performs useful services to society. Business requires multiple objectives since it has to balance a number of needs and goals related to various aspects of society. Following only one objective cannot lead business towards excellence. Objectives are needed in every area where performance and results affect the survival and prosperity of business.
- Market standing: It refers to the strong foothold of the enterprise among st other competitors. It is very important for a business to have a better market standing by offering full satisfaction to customers.
- Productivity: Every enterprise should aim at a higher productivity by efficiently using the available resources. It is calculated by the anticipated value of outputs to the inputs required in the production process.
- Efficient use of resources: A business needs both physical as well as financial resources. Physical resources include plans and machinery and financial resources are the funds needed to produce goods and supply them to the customers.
- Profit: Profit is one of the main objectives of a business. Profit provides support to the business and helps in its growth.
- Management: It is very important for the management to have a positive outlook and they should be efficient in their job. A large portion of the company's operations depend on the attitude of the management.
- Social responsibility: A business cannot be only profit centric. It should have a social responsibility to come forward and help those in need.
the following are the 5 objectives of business 1. economic objective 2. social objective 3. legal objectives4 sales growth 5 wealth maximization.
- It is generally believed that profit earning is the primary objective of business. However, as per modem thinking, business needs to have several objectives. Consistent and sustainable profit can be earned only if the business performs useful services to society. Business requires multiple objectives since it has to balance a number of needs and goals related to various aspects of society. Following only one objective cannot lead business towards excellence. Objectives are needed in every area where performance and results affect the survival and prosperity of business.
- Market standing: It refers to the strong foothold of the enterprise among st other competitors. It is very important for a business to have a better market standing by offering full satisfaction to customers.
- Productivity: Every enterprise should aim at a higher productivity by efficiently using the available resources. It is calculated by the anticipated value of outputs to the inputs required in the production process.
- Efficient use of resources: A business needs both physical as well as financial resources. Physical resources include plans and machinery and financial resources are the funds needed to produce goods and supply them to the customers.
- Profit: Profit is one of the main objectives of a business. Profit provides support to the business and helps in its growth.
- Management: It is very important for the management to have a positive outlook and they should be efficient in their job. A large portion of the company's operations depend on the attitude of the management.
- Social responsibility: A business cannot be only profit centric. It should have a social responsibility to come forward and help those in need.
the following are the 5 objectives of business
1. economic objective
2. social objective
3. legal objectives
4 sales growth
5 wealth maximization.
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