Question

Attempt the following.

Describe various other objectives of a business.

Answer 1

Business is an economic activity which includes the production and distribution of goods and services. The business has done to get profit. Even though the business is done with the intention of making a profit, that is not the only objective of the business. There are other objectives of the business.

The objectives of the business are explained below:

(A) Economic Objectives:

1. Searching of New Customers: Business needs expansion. So that it can earn more profit. Therefore searching for new customers or new markets becomes an important economic objective of the business.
2. Earning Profit: Making profit always becomes the main economic objective of any business.
3. Best possible Use of Resources: It is the responsibility of any businessman to make proper use of available resources. It is because resources are limited and the demand for resources is more. When a businessman uses resources carefully and economically, he can save his money. It will ultimately result in an increase in profit.
4. Innovation: Business needs change according to the current situation. New products, new processes should be found out to remain in the competition in the market. Then only a business can survive and continue making a profit. Therefore making innovations is one of the economic objectives of the business.

(B) Social Objectives:

The following are the social objectives:

1. Contributing to the Welfare of the Society: Social objectives include working for the betterment of the society in general. It IS the responsibility of the business to work for the welfare of the society by carrying out social welfare programmes.
2. Avoiding Unfair Trade Practices: Unfair trade practices are those practices which are not advisable in business. They include black marketing, hoarding, adulteration, wrong representation, false advertisements, etc. Unfair trade practices make an adverse effect on the business. Therefore one of the important social objectives of a business is to keep itself away from such practices.
3. Supplying Quality Products: It is the social objective of business, to provide quality products to the customers. The customer is an important part of any business. Without customers, a business cannot function Therefore it is the responsibility of the business to provide safe, non-adulterated, durable products to the customers.
4. Help to Solve Social Problems: In the modern world, many social problems are occurring in society. Business is a part of society and therefore one of the social objectives of the business is to help to solve the social problems.
5. Employment Generation: A business can provide employment to many people. It becomes the social objective of the business to generate more and more employment. This will help to reduce the problem of poverty and unemployment.
6. The welfare of Employees: Employees are an integral part of any organisation. Businesses cannot function without employees. It is therefore the responsibility of the businessman to provide better working conditions to employees. Better working conditions help to improve the productivity of the employees.