To keep up with the growing competition a businessman has to introduce efficient design, latest trends, upgraded machinery, new techniques, etc. Nowadays, business is ever-changing and dynamic. Innovation normally means to change processes or creating more effective processes, products and ideas. So to generate profit and demand, the business must supply premium quality and give value for money products. The creation of good and satisfaction of the needs of the customer is a crucial purpose of the business. In the long run, the survival of the business completely depends upon the market share captured by the business. They are the result of the hard work of the businessman to satisfy the needs of the customers.
“ Profits are not generated out of thin air. In the words of Drucker, “There is only one valid definition of business purpose to create a customer. Profits likewise show the scale of stability, efficiency, and advancement of the business organization.
Profit guarantee a consistent stream of capital for the modernization and augmentation of business activities in the future. Profit is necessary for growing and expanding business activities. Just as a plant cannot survive without water, similarly a business cannot sustain without profit. The main objective of any business is to earn a profit. Profit is the extra income over the expenses. They are as follows: 1] Profit Earningīusiness is a set of activities undertaken with the prospect of sale for the purpose of earning a profit. Let’s understand the economic objectives of the business. Hence, its purpose is to show economic results. We learned in the previous topic that business is an economic activity. Comparison of Business, Profession and Employment.Concept and Characteristics of Business.The objectives of a business can be classified into two main categories, which areīrowse more Topics under Nature And Purpose Of Business The right choice of objectives is critical for the success of the business.
Objectives are needed in every area where performance and results directly affect the survival and prosperity of a business. We can call objectives the cornerstone of every business. Objectives of business are the purpose for which the business is established and performed. For example, a business wants to set up its franchise in another state in the next 3 years or it wants to increase its workforce in the coming months.īusiness needs objectives, without objectives the business is like a car without headlights driving blind. where the business wants to reach in the future.
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