Business is an economic activity and is carried out by at least two parties, namely: buyers and sellers. Sellers sell goods and services to buyers and in return the buyer pays for it.
Business is surrounded by various factors and those factors influence the business, similarly business also influences various factors. The main objective of any business is to earn profit because without profit the existence of business is not possible but while running a business the business serves different types of objectives, these objectives can be internal or external.
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Objectives of Business
Following are the objectives of business:
1. Profit:
Making a profit is the primary objective of the business because the main objective of forming a business is to make profit. Making a profit is very important for any business because there are many types of expenses in business which can be met only through profits.
2. Products:
Another important objective of business is to provide goods and services to the customers and consumers because the product is an element of business without a product business is not formed.
3. Creation of Customers:
The objective of business is to make profits by selling goods and services to buyers. If there are no buyers available then to whom will the business sell its goods and services? That’s why the creation of customers is an objective of business.
4. Growth:
Every business dream of growth and works hard to achieve growth, that is why growth is also the objective of business. The growth can be in terms of revenue, production, area, number of employments etc.
5. Innovations:
Innovation is necessary for the survival of business because nowadays the government and other organizations are promoting competition in the market due to which competition in the market is increasing rapidly. In the times to come, only those businesses will survive which will rapidly adapt to change and keep innovating.
6. Productivity Increase:
Every business continuously strives to increase productivity because increased productivity reduces production costs, thereby increasing profits. That is why increasing productivity is an objective of business.
7. Proper Utilization:
Most of the revenue is used in the resources of the business because without resources the business cannot run so every business tries to use the resources properly.
8. Employment:
From the social aspect, employment is an objective of business because every business is dependent on employees and every employee is dependent on the business.
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QNA/FAQ
Q1. Is making profit the objective of business?
Ans: Yes, making a profit is the primary objective of the business because the main objective of forming a business is to make profit. Making a profit is very important for any business because there are many types of expenses in business which can be met only through profits.
Q2. Is innovation necessary for business?
Ans: Yes, innovation is necessary for the survival of business because nowadays the government and other organizations are promoting competition in the market due to which competition in the market is increasing rapidly. In the times to come, only those businesses will survive which will rapidly adapt to change and keep innovating.
Q3. Is employment the objective of business?
Ans: Yes, from the social aspect, employment is an objective of business because every business is dependent on employees and every employee is dependent on the business.
Q4. Write the objectives of the business.
Ans: Following are the objectives of business:
1. Profit
2. Products
3. Creation of Customers
4. Growth
5. Innovations
6. Productivity Increase
7. Proper Utilization
8. Employment
