Question

Write short notes on the following.

Economic objectives of business

Answer 1

The following are the economic objectives of business.
i. Earning profits: Earning profits is the main objective of every business. Profit forms the income of businessmen and is the reward for taking risks.

ii. New prospects: Finding new prospects or new customers can be another objective of business. Customers are important for any business. Specially, in competitive businesses, the marketer aims to increase its profits by increasing its customer base.

iii. Innovation: A business must grow and develop to capture maximum market share and earn higher profits. For this, it is necessary to emphasise and focus on innovation of new technologies and products such that the business is able to adapt to the changing environment and the tastes of the people.

iv. Resource Utilisation: Using resources efficiently or with minimum wastage also results in increase in profits. Thus, optimum use of resources is another objective of a business. Here, efforts are made to reduce the wastages and make best use of scarce resources.