Question 6

Explain any five objectives of business.

Answer

Five objectives of business are:

1. Market Standing: It refers to the position of business enterprise in the market with regard to its competitors. The business enterprises should work hard to maintain its position in the market.

2. Innovation: If the business enterprise wants to win the confidence of customers and goodwill in the market, it has to adopt the concept of innovation. Innovation is the introduction of new ideas or methods in the way something is done or made. In business there are 2 kinds of innovations.

  • Innovation in product or service.
  • Innovation in the various skills and activities needed to supply them.


3. Profitability: It refers to profit in relation to capital investment. Every business must maintain minimum level of profitability in order to survive in the business.

4. Manager performance and development and worker performance and attitude: Manager Performance is an important parameter in the success of business. However, this is not possible without the efficient and positive performance of workers. Workers’ performance and attitudes determine their contributions towards productivity and profitability of any enterprise.

5. Social Responsibility: Social responsibility refers to the obligation of business firms to contribute resources for solving social problems and work in a socially desirable manner.

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