An objective denotes a goal for the achievement of which efforts are directed. Every business has its sets of objectives. The objectives of the business are covered under the following categories.
The following are the economic objectives of a business:
- Every business is started for earning profit because profit is the acid test of every business.
- Earning of profit can be made when exchange of goods takes place. so every business has the objective of production of goods.
- The primary aim of business is to effect sale for the product produced. This can be made possible through creation of market. So every business has the objective of creating market for the products.
Human objectives require careful consideration and well-being of shareholders, consumers and employees. The following are the human objectives of the business:
- The business should render welfare to its employees.
- The consumer should be supplied with qualitative products so that they will feel satisfied.
- The business should have the objective of providing enough satisfaction to the shareholders. They should feel that their money is not misused by management.
- The business should have the objective of being helpful to the government. The business is the main contribution of funds to the government.
The business has certain social responsibilities and is required to undertake those activities which are essential for the betterment of the society.
The following are some social objectives of the business:
- To ensure continuous supply of goods to meet the requirement of the society.
- The business should help the government in formulating the policies of socialistic pattern of society.
- The business should create more employment opportunities.
- It should ensure effective utilization of natural resources.
The business enterprise contributes substantially for the upliftment of the nation. The followings are the national objectives of the business:
- The business should help in the development of small scale industries.
- The business should aim at improving the economic position of the society.
- The business should help in providing skilled personnel for the country.