Question

Discuss at least five objectives of a business

Answer 1

The objectives of a busness are-

1) Profitability- The main objective of a business is to earn profit. The owner or stakeholders should earn profit out of it. But this should be done in an ethical way, not by engaging in any unfair business practices.

2) Survival- The business should be able to survive the market shocks because the owner sets it up with a long term view and if it does not survive market shocks, it won't survive for long term.

3) Efficiency- The business should be efficient enough to produce more profits. Efficiency brings the costs down which automatically pushes the profits up. Efficiency can be in form of minimal waste production or labour efficiency.

4) Growth- The business should grow with time to generate more income. Growth can be increase in capacity, employees, revenue, profits etc.

5) Stability- Changing markets can be handled by a stable business, so there should be stability. Stability can be in terms of employee satisfaction so that employees do not leave the firm or creditworthiness.