Objectives of Business

Business is a broad topic that comes under business studies. It includes all the people working in and outside any organisation or industry that affects production. Customer demands, employees, expectations, management, clients, supply and demand, suppliers, technological innovation, economic changes, owners, government actions, market trends, social trends, and so on are all an integral part of the business. For any business to run long-term, having an objective is of prime importance. There are various kinds of objectives that we will study today in this article. 

In this study material notes on the Objectives of business policy, you will get a detailed understanding of the business, the importance of the business, the characteristics of a business, along with Objectives of business. 

So, without further ado, let’s get started with the Objectives of business class 11 study material. 

Concept of Business 

In simple terms, a business can be defined as an economic activity that includes the purchase, sale, production, and exchange of goods and services to satisfy the customer’s needs while generating a decent profit. There are mainly two types of businesses that run in the economy. It includes profitable businesses which are done to earn profit. The second is the non-profitable businesses that are done to support a social cause. For the success of any business, the business environment plays a critical role. 

The business environment includes many internal and external entities such as suppliers, competitors, the media, the government, customers, economic conditions, investors, and so on that together make up the business environment. Various factors affect organisations, such as the extent of activities, nature of the firm, and others. You must have come across terms like big enterprises, international corporations, and small businesses quite often. These are mostly concerned with describing the business scale.

Characteristics of Business 

Here are the characteristics of business – 

• An economic activity – A business is an economic activity that includes the regular sale and purchase of goods and services to earn profit. The profitable business does not aim to promote a social message or get into social work. 

• Manufacturing or procurement of goods and services – The business produces or manufactures goods or products before it reaches the consideration for the final consumption. Business enterprises are involved in converting raw materials into finished goods. 

• Exchange of goods and services – All business activities are concerned with the transfer or exchange of goods and services to earn profits. Business does not produce goods for personal consumption. 

• Dealings with goods and services – All businesses dealing with either goods or services should be included in these functions on a regular basis. One-time sale does not come under business.  

• Profit earning – In case the business isn’t making any profits or very little profit, it will not last for a longer time. The primary purpose of conducting every business is to earn maximum profit while minimising the cost involved. 

• Uncertainty – In every business, uncertainty always exists as there are lower chances of earning profits. 

Objectives of Business 

The objective of business is as vital as blood for the human body. The objective of the business is referred to the goal for which the business is actually established. There are two major types of business goals. These include – 

• Economic objectives 

• Social objectives 

Let’s understand these objectives in detail – 

Economic objectives 

Further, economic objectives are divided into several parts. These include – 

• Profit earning – The primary objective of a business is to earn maximum profit or generate a large amount of income to live a quality life. The profit can be defined as the extra income earned over the expenses made to build a product. Just like a plant that needs water and sunlight to grow and survive, a business needs regular profit. 

• Creation of customers – The next major objective of every business is the creation of customers. Ever imagined a business without customers? It might be a nightmare for every businessman. In the long run, the business survival is hugely dependent on its customers. 

• Resource innovation and utilisation – Today, businesses are ever-evolving and dynamic; therefore, resource innovation and proper utilisation have become a significant part of business economic objectives. To keep with the growing competition and demand, following the latest trends, introducing new policies, and upgrading inventories are extremely important. 

• Increase in productivity – Business efficiency is measured through productivity. Although it is the last economic objective of a business; however, it is no less important than others. To guarantee business survival, productivity plays a significant role. 

Social objectives 

Further, the social objectives of business firm are divided into the following parts – 

• Setting reasonable prices – Business is the most important part to meet the customer’s ever-evolving demands. Therefore, it is necessary that essential goods and services be priced reasonably to enjoy them even for the common people. 

• Employment generation – Another major social objective of business is employment generation. It is one of the significant issues the youth faces as there are fewer job opportunities. However, businesses can provide employment. 

• Fair remuneration to employees – Every business owner is not only responsible for their growth but the growth of their employees as well. Therefore, there should be fair remuneration which will bring work efficiency and dedication. 

Conclusion 

With this, we end our study material on the Objectives of business class 11. In these business objectives notes, we studied business, an economic activity that includes the purchase, sale, production, and exchange of goods and services to satisfy the customer’s needs while generating a decent profit.

We covered the introduction to business, the features, and economic and social business objectives in detail. We hope the Objectives of business firm study material must have helped attain a greater understanding of this topic.