Why does business need multiple objective? Explain any five such objectives.

Explanation

Need for Multiple Objectives


It is generally believed that profit earning is the primary objective of business. However, as per modem thinking, business needs to have several objectives. Consistent and sustainable profit can be earned only if the business performs useful services to society. Business requires multiple objectives since it has to balance a number of needs and goals related to various aspects of society. Following only one objective cannot lead business towards excellence. Objectives are needed in every area where performance and results affect the survival and prosperity of business.


Five of the objectives of business are described below


(i) Profit Maximisation Profit is defined as excess of revenue over cost. Profitability refers to profit in relation to capital investment Although, earning profit cannot be the only objective of business, its importance cannot be ignored. Every business makes an attempt to reap maximum profit as possible in the given market conditions.


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