Essay on the Economic Objectivesof Business

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a. Earning profits:

Profit becomes the main motive of a business. In fact, it is this motive that differentiates business from a profession or a non-business activity. Earning a reasonable rate of return on investment is one of the objectives, but not at the cost of quality of the product.

Avoidance of loss gains importance in a business as it becomes necessary that every business has to earn an income to grow and to remunerate the factors of production which have helped in producing a product.

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b. Production of wealth:

The business has to produce tangible form of wealth for the benefit of the community. It is an arrangement, where supplies are created and made available to people according to their needs, and their economic position.

c. Creation of a market or finding out a customer:

The final aim of any business is to sell the product to its customer. Hence, the: business depends upon whether the market avenues are open to its product or whether the market strategies accept the product. There is no use of producing a product, without anybody wanting to buy it. Hence, customer is regarded as the foundation of business.

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d. Innovation:

Dynamism is the other name for business. The contemporary business is undergoing fast changes. With the development of science, competition is increasing. Hence innovation is essential for survival and continued prosperity of business.

Innovation may not be necessarily confined to the invention of a machine but includes all the efforts made in perfecting the product. It includes all those methods applied in personnel management, accounting, selling etc with a view of attaining higher efficiency.

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