Briefly discuss the economic objectives of a business.

Explanation

As business is an economic activity so the most important objectives of business are economic objectives.


1.Earning Profit: A business cannot survive without earning profit. The businessman can maintain its assets, can meet its operating expenditure inly when it is earning profit.

2.Market Share: Business can survive for a longer period only if it is earning profit and capture a big share in the market and has a market standing.

3.Innovation: It refers to development of new methods of production and adoption of new and latest technologies. Innovation can be in production or in marketing or in distribution.

4.Optimum utilisation of resources: Optimum utilisation of resources refers to the best use of men, material, money and machinery. The resources of business are scarce so these must be utilised in the best possible manner so that the business can get maximum benefit from these resources.