business<\/a> is an organisation of human, material and other intangible resources. It is created to offer satisfaction to its customers, owners, employees, managers and other stakeholders. The function of business is to create, retain and satisfy profitable customers as a means of successfully achieving the desired ends of an enterprise.<\/p>\n\n\n\nAlthough as regards the objectives of business, the general belief is that earning profits is the sole objective of a business. But this is not true. Professor L. Urwick has rightly pointed out “Profit can be no more the objective of a business than eating is the objective of living”. The fact remains that human beings do not live with the sole objective of eating and similarly business cannot exist with the sole objective of making profits.<\/p>\n\n\n\n
The following are various objectives of business:<\/p>\n\n\n\nOBJECTIVES OF BUSINESS<\/figcaption><\/figure>\n\n\n\n<\/span>A. ECONOMIC OBJECTIVES<\/span><\/h4>\n\n\n\n1. Profit Earning:<\/strong> It cannot be denied that business is started for earning profits. Profit is the basic incentive to business pursuits. Profits are needed to face various uncertainties like trade cycles, changes in demand pattern and fluctuations in money markets. A business needs profits not only for its existence but also for expansion and diversification. The investors want an adequate return on their investments, workers want higher wages and the entrepreneur needs money for reinvesting. All these demands and requirements will be met only when some profits are made.<\/p>\n\n\n\n2. Survival: <\/strong>The basic objective of organisation is to ensure that it continues to survive and exist in the future. Survival is possible only when organisation is able to earn enough to recover the cost of its assets.<\/p>\n\n\n\n3. Growth: <\/strong> A business needs to add to its prospects in the long run. For this, the organisation must grow and expand to survive in the long run. Growth of an organisation indicates how well it is able to exploit its potential opportunities. Growth is measured in terms of sales, volumes, increase in number of employees, market share, number of products, increase in capital investment etc.<\/p>\n\n\n\n<\/span>B. HUMAN OBJECTIVES<\/span><\/h4>\n\n\n\nHuman objectives of business require that a workable balance should be maintained among the claims of various interested groups like employees, shareholders, consumers, government etc. As a socio-economic organisation, modern business organisation must fulfil the following human objectives:<\/p>\n\n\n\n
1. Welfare of Employees: <\/strong>The employees should be looked upon as human beings. The old theory that workers should be coerced to get more work is no longer valid. With the advent of Industrialization, production has increased many times resulting in more profits to the businessman. The employees of an enterprise help in increasing the profitability and they should get increased allowances. <\/p>\n\n\n\nProductivity should be linked to various incentive schemes. The workers should be rewarded for their hard work. The businessman should look after the welfare of his workers. The workers should be provided with physical comforts, material incentives, appreciation, dignity of labour which will motivate the workers to give their best.<\/p>\n\n\n\n
2. Satisfaction of Consumers: <\/strong>The consumers should be provided quality goods at reasonable prices. The tastes, likings and requirements of the consumers should be given due weightage. The business is meant for consumers and their satisfaction should be the main objective of the business. So, responsibility to consumers means setting up and maintaining standards of quality and service in addition to reasonable price.<\/p>\n\n\n\n3. Satisfaction of Shareholders: <\/strong>In the present business world, ownership and management are in two different hands. The shareholders are spread all over the country and they have no hand in the day-to-day working of the business. The management should give reasonable return on the money invested by the shareholders. <\/p>\n\n\n\nThe shareholders should also feel that their money is not misused by the management. Taking these considerations into account, company law has provided many restraints on management so that the company resources are employed for the welfare of all. These things are important to encourage more investments into the business,<\/p>\n\n\n\n
4. Helpful to Government: <\/strong>A business owes responsibility to government also. Industrialization has created a number of problems which a government is expected to solve. An unplanned industrial growth has created a problem of pollution. This problem is so huge that government cannot do much without the help of business community. <\/p>\n\n\n\nEvery industrial house should use methods of controlling pollution at unit level. It will help in reducing and controlling this problem. Business should also pay various taxes to the government honestly and promptly. Government cannot be run without financial resources. Business makes main contribution to the government funds.<\/p>\n\n\n\n