Business is everywhere in the world, and everyone is linked with, or engulfed by the business. The food we eat, the cloth we wear, the car we ride or drive, the television we watch or enjoy, etc. are produced, distributed, and sold by the business. To be able to buy these things, we earn money working mainly in a business. The bank where we keep the saved portion of that money is also doing business. Thus, “a business is an organization engaged in producing goods and or rendering services to make estimated or realized economic surplus known as profit”.
Business denotes those human activities, which are directed toward creating utilities and acquiring wealth through the process of buying and selling of goods or services.
Objectives of Business
The business is a goal-oriented activity. Certain objectives work behind business activities. The objectives of business may be classified as.
a) Economic objectives,
b) General objectives, and
c) Social objectives
There are given below business objectives examples.
a) Economic Objective:
1. Earning profit: To earn money or livelihood, human being adopts economic activity (s). Service or job is limited in supply. So an alternative to earn money is business. Then the prime objective of any business is to earn profit. Profit hair is the reward of the entrepreneur. Without profit- motive business can survive.
2. Resources Utilization: Government sometimes initiates some business to utilize natural resources.
3. Defence Motive: In most of the cases business of defence weapons and instruments is ran by and kept in the governmental hand, which ultimately ensures economic stability and development.
b). General Objectives:
1. Investment of Capital: Business is a better area of investment of capital. Money makes money, when it is invested in business. So business is a bette field to make money through investment of savings.
2. Utilization of Labor:Business is a better way to employ the labor force of any country. Labor is a valuable perishable resource and the labor can be preserved only through its use in the production process.
3. Utilization of Natural Resources: Man can’t create or destroy anything. He only creates utility on the natural resources. Natural resources are valuable divine blessings to the mankind. Thus, preservation of natural resources through appropriate technology is one of the objectives of the business.
c) Social Objectives:
Business also serves the society in a number of ways. Business is for the society and the society is benefited by the business in a number of ways. According to Mr Urwick, ‘Profit can be no more the object of a business than eating is the objective of living’. The social objectives of business are as follows:
1. Supply of Goods:One of the objectives of business is to supply goods to the society. Society needs commodities. Business provides necessary goods to the society at lower prices.
2. Protection and Development of Environment: Suitable environment is a precondition to human existence. Business tries to develop environment by utilizing hazardous materials and by treatment of detrimental materials in some cases.
3. Employment Generation: Unemployment is a severe problem for the society. Business provides employment to the labor force, and thus helps the society.
4. Creation of Nation’s Resources: Business creates resources for the nation by value addition or utility creation. Thus, national income increases, and standard of living income become higher.
Thus business serves a number of economic and social objectives.