Economic Objectives of Business

Supriyo Sir
Economic Objectives of Business

Describe the economic objectives of business.

The need for people is infinite. The production and distribution of various goods and services are required to meet this infinite need. Trade and business activities have developed around the production and distribution of goods and services. Every human being has to accept a financial occupation for livelihood. The business is a financial venture. The economic objectives of the business are:

1. Production, sale, and redemption:

The basic needs of every socialized person are food, clothing, and shelter. Businesses arrange the production and distribution of various products and services to meet the basic needs of each person. In addition, with the advancement of civilization, the cultural needs of the people have also increased. Books, movies, theatres, radios, TVs, etc. have been arranged by various business organizations to meet cultural needs. That is, the main economic or personal purpose of the business is to meet the physical and mental needs of the socialized people.

2. Earning profit:

People do business for a living. No one deals only for the welfare of the people. So, the main driving force of the profit business. Because just as profit sustains business, it also keeps society moving. From profit or surplus, people meet their own needs. Again the accumulated profits create future capital. So, making a profit is one of the purposes of business.

3. Creation of buyer:

The main basis of the business is the buyer. That is why every business tries to create new buyers. As the number of buyers increases, the general profit rate decreases, but the total profit increases.

4. Increase in social status:

When the business is profitable, the business gains economic prestige. This economic expansion increases the social status of the business. However, in order to make a profit, the business has to do some social work.

5. Innovation of new methods:

The role of business in the prosperity and expansion of the country’s economy is undeniable. The business performs this task by inventing new methods. In a changing society, the tastes, preferences, and needs of the buyer always change. That is why producing new products is one of the main objectives of the business.

Important Questions from this Chapter:

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