1.

Explain briefly any four objectives of business.

Answer»

(a) Market standing.

(b) Innovation.

(c) Productivity.

(d) Earning profits.

Detailed Answer : 

Objectives of business : 

(a) Market standing : Market standing refers to the position of an enterprise in relation to its competitors. A business enterprise must aim at standing on stronger footing in terms of offering competitive products to its customers and serving them to their satisfaction. 

(b) Productivity : Productivity is calculated by comparing the value of outputs with the value of inputs. It is used as a measure of efficiency. In order to ensure continuous survival and progress, every enterprise must aim at greater productivity by the best use of available resources. 

(c) Earning profits : One of the objectives of business is to earn profits on the capital employed. Profitability refers to profit in relation to capital investment. Every business must earn a reasonable profit which is so important for its survival and growth. 

(d) Physical and financial resources : Any business requires physical resources like plants, machines, offices, etc., and financial resources, i.e., funds to be able to produce and supply goods and services to its customers. The business enterprise must aim at acquiring these resources according to their requirements and use them efficiently.



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