Question

Answer in brief.

Write any four objectives of the business.

Answer 1

All business activities are guided by objectives. They are further classified as:

1. Economic Objectives
2. Social Objectives

1) Economic Objectives:

1. Earning Profit: Profit is required for the survival of the business and for its growth.
2. Searching New Customers: Business organizations have to work hard to create new customers and also to maintain existing customers.
3. Innovations: It is a development or positive change which results in an improvement in the product or process of production. It has to spend money on R & D (Research and Development), market surveys, use of technology, etc.
4. Best Possible Use of Resources: Resources are scarce and have alternative uses. They should be used to their maximum and should not be wasted. Optimum use of resources ultimately leads to increased profits.

2) Social Objectives:

1. Supplying Quality Products: Every business has to provide quality products to its customers. Quality means a combination of purity, safety, durability, utility, etc.
2. Avoiding Unfair Trade Practices: Unfair trade practices like black marketing, misleading advertisements, wrong measurement, etc. should be avoided. It is important for the survival and growth of a business unit.
3. Employment Generation: Business is a socio-economic institution. Businesses should create jobs for skilled and unskilled people. It should provide employment opportunities to economically backward and divyang persons.
4. The welfare of Employees: Skilled and unskilled workers are part of society. So if employees are properly taken care of, it brings welfare to society. This can be achieved by providing fair and regular remuneration, good working conditions, impartial personnel policies, offering incentives, etc.
5. Help to Solve Social Problems: Due to rapid industrialization, many social problems arise like traffic jams, the growth of slums, air and water pollution, etc. Businesses should be aware of this and should try to reduce them.
6. Contributing to the Welfare of Society: Business houses should take care of the general welfare of society. For that, they should give donations for good causes, offer scholarships for higher education, etc.