“Objectives of

business”
Objectives of Business
Business activities are undertaken
primarily to earn profit because, profit is the
lifeblood of the business. Business activities
cannot be undertaken in isolation from the
rest of the society. Thus business activities
should be conducted to fulfil the expectations
of the society and they will have multiplicity
of objectives, including social responsibility
to survive and prosper in long run. It may be
stated here that profit is the primary
objective but not the only one.
Role of profits in business
 It is a source of income, and it provides the means for
livelihood for the businessman. Nobody can undertake
business activities without earning income to satisfy his
needs
 Profit may earned to provide growth and expansion of the
businessman
 Profit earning ability is considered to be the index of
business success.
 Profit is the reward for the entrepreneur’s taking business
risk.
 Profit provide economic power and status to businessman
 It can raise funds on easy terms.
Market standing
Business activities can be sustained only if it
has a good standing in the market. This
necessitates of the business to lay down
objectives to establish a place in the market and
protect itself from competition.
Innovation
Innovation means exploring and discovering
ways and means by which products are made
more useful to customers. The business world is
highly competitive. In order to capture the
market, new or improved products must be
offered for sale. This is possible only with the
help of new methods of production.
Productivity
Productivity is ascertained by comparing the value
of inputs. It is usually taken as the measure of
efficiency. Every business must aim at greater
productivity by making the best possible use of the
scarce resources like men, money, machinery, materials
etc...it reduces the wastage of materials , fuller
utilisation of equipments, and allotting funds with due
to regard to the benefit delivered.
Physical and financial resources
All business establishments require physical
and financial resources. Physical resources
include plant, machinery, offices etc... by
financial resources mean fund to produce and
supply goods and services to their customers .
Earning profits
The primary objectives of the business is to
earn profit. It is driving force behind every
enterprises. Profit has multiple objectives.
Manager Performance And Development
Good managers are needed by business
enterprises to conduct and co ordinate
various business activities. Managers must be
motivated well to get the best out of them.
Manager performance and development must
be an important objectives of any business.
Worker Performance And Attitude
Workers performance and attitude very much
determine the productivity and profitability of
any business enterprise . every business
enterprises must provide the workers with
incentives to improve their performance.
Social responsibility
Social responsibility refers to the obligations
of businessmen to pursue those policies, to make
those decisions which are desirable in terms of
the objectives and values of our society.