What is business? What common objectives do businesses share?
Mar. 21, 2017
Business refers to the state of being busy in some activities. It means conducting activities such as sale, purchase and manufacturing for the profit and growth of the business. Business also refers to an organization or enterprise engaged in commercial, industrial or professional activities. A company transacts business activities through the production of goods, the offering of a service or retailing of already manufactured products. Since businesses organizations are established in the market to achieve their own goal, it becomes very difficult to generalize the objectives of a business. However, the most common objectives that businesses share are given below.
1. Profitability
Earning profit is the most important objectives of business. One, generally set up a business with a view to achieving profits. But it should not be such that business should somehow earn the profits. It should earn the profit by working under rules and regulation or following the ethical practice.
2. Growth:
Every business compete to lead the market by growing its market share. The growth of business may be measured on one or more forms like an increase in assets, manufacturing facilities, increase in sales, increase in profits number of employees employed etc.
3. Stability
Stability means continuity of business and it is needed to safeguard and consolidate its existing strengths and interests by utilizing the resources and funds. An enterprise or business should always try to achieve in terms of customer satisfaction, creditworthiness, employee satisfaction, employee satisfaction etc. A stable business can easily handle the changing dynamics of markets.
4. Efficiency:
In today's competitive world, business should perform its functions efficiently in order to sustain in the market. Businesses always try to best in its field. Efficiency is measured in terms of labour productivity, energy consumption, cost of production, quality of production etc
5. Survive:
A business should have the capability to survive in the market. In order to exist in the competitive market, a business organization needs to analyze the business environment and make a vision of long term existence.
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Jeeba lal Chapagain