Objective of Business

• Survival: Survival is an obvious objective. Other objectives can be accomplished if the business enterprise survives.

• Growth: Growth is an objective because business does not stand still. Market share increase, personal and individual development and increased productivity are important growth objectives.

• Profit motive: The profit objective plays a big role in business. Profit rewards a business enterprise for effectively conducting a number of activities. Profit is necessary for the expansion and development of the business. It is the measure of the success of the business. Business can increase its properties and assets if more and more profit is made.

• Social responsibilities: Meeting social responsibilities has been recognized as important objectives. Business has to discharge social responsibilities by means of satisfying the needs and aspirations, tastes and fashions of the customers. Social objectives are achieved in the following ways:
• By supplying better quality goods and services,
• By creating employment opportunities,
• By paying adequate and fair wages to the workers and employees,
• By utilizing limited resources of the country judiciously and economically,
• By paying reasonable price to the suppliers,
• By conserving assets and increasing fair return on capital and thereby providing for capital formation.
• By investing social capital.
• By flourishing international trade and commerce.
• By removing the pollution.
The objective of Business can be divided of three types:

Economic System:

• Business operates in different economic systems.
• An economic system is a nation’s system of allocating its resources among its citizens- individuals and organizations.
• An economic system uses a basic set of rules to allocate its resources in order to satisfy its citizen’s needs.
• Resources are called factors of production.
• Factors of production are resources used in the production of goods and services. Factor are-
• natural resources ( land, forest, minerals, water) ,
• Labor consists of human resources used to produce goods and services.
• Capital (machine, tools, equipments and money). Capital may be financial and real capital.
• Entrepreneurs are people who establish a business enterprise to produce goods and services for other people.  They accept the risk of failure to organize the other three factors of production in order to produce goods and services most efficiently.  They combine productive resources together to produce an output. They are the active factor in the production process.
• Ownership and control of factors of production are different in different economic systems.


Socialism


• Socialism is a planned economic system in which the government owns and operates only selected major sources of production.
• Smaller business such as clothing stores and restaurants are privately owned.
• Government involvement in a socialistic economy system is limited to industries considered vital to the common welfare.

Human objective:

• Workers and employees are human factor. Human objectives mean the judicious use of human factor. This can be done by --
• Developing the human relations,
• Maximum utilization of the efficiency and working capacity of the workers,
• Providing maximum satisfaction to the workers,
• Paying fair and adequate wages to the workers,
• Motivating the workers,
• Creating congenial working conditions within and outside the factory.