Question

true or false?

primary objects of a business operation is to repay the shareholders to maximize their well

Answer 1

According to my interpretation,

False, the primary objective of a business operation not to repay the shareholders to maximize their wealth

These the important objectives of a business operation :

1. Profitability – This is one of the most important objectives of business. We normally setup business to achieve profits for its owner or shareholders. But, does it mean that business should somehow, by hook or crook, earn the profit? Our answer is no; it should earn profit by working under rules and regulations or by following ethical practices.

2. Growth – Another important objective of business is to achieve growth. The growth should be in terms of increase in profit, revenue, capacity, number of employees and employee prosperity, etc.

3. Stability – Stability means continuity of business. An enterprise or business should achieve stability in terms of customer satisfaction, creditworthiness, employee satisfaction etc. A stable organization can easily handle changing dynamics of markets.

4. Efficiency – An efficient or aggressive working environment. A business should always try to achieve the best in its field. Efficiency is considered in terms of labor productivity, energy consumption, quality control etc.

5. Survival – A business should have the capability to survive markets jolts or shocks. A business should be there with a vision of long-term existence.