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explain the economic and social objectives of business

Dear student,

Economic Objectives- The primary objective of every business is economic in nature. The economic objectives of  the business are:

1. Profit- A business is set up with the aim of earning income. Profit is essential for survival of the business. It aspires people to start a business. Profit is necessary for growth and expansion of business, It measures efficiency and progress of business.

2. Customer Creation- A business can earn profit only when there are enough customers to  buy its goods and services. Customers are the foundation of business. No business can succeed without satisfying the wants of the customers.

3. Innovation- A business can survive in competitive market only when it uses new techniques. Innovation means making new designs with new technique with minimum cost. Innovation helps in retaining old customers and providing new customers by providing better quality goods and services to them.

Social objectives- Every business is a part of society, therefore, it must perform its social responsibilities. The social objectives of the business are:

1. Supplying quality goods at reasonable prices- Business should avoid malpractice like misleading advertising etc and supply good quality goods and services at fair prices to its customers.

2.Employment- Business should provide employment opportunities for members of society. Creating employment opportunities are an important service to society. 

3. Safe  working conditions and fair remuneration to employees- A business should provide fair wages and salary to its employees, In addition, the share of profit should also be given to employees to motivate them. Business should provide good working conditions to improve productivity and efficiency of employees.

4. Tax- Business should pay taxes on time to the Government.

Regards

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economic objective of business is to earn profit and social objective is to help the society...r working for the beneficial of the society
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Economic Objectives
Business is an economic activity and therefore, its purpose is to show economic
results. The economic objectives of business are follows:-
(i) Earning profit : Profit means excess of income over the expenditure. The
foremost and prime objective of every businessman is to earn profit. A
business cannot service without earning profit. Not only for survival but
it is also required for growth and expansion of business.
(ii) Market standing/creation of customer : Business can survive for a longer
period only if is able to capture a big share in the market & has market
standing. It is possible only when business provides goods and services
to satisfy the needs & wants of customers. Therefore, creation and
satisfaction of customers (market) is an important objective of business.
(iii) Innovations : Innovation means making new products or adding new
features of old products for making it more useful, improving methods of
production & distribution exploring new markets, etc. In these days of
competition, a business can be successful only when it creates new
designs, better machines, improved techniques, new varieties etc.
(iv) Optimum utilisation of resources : It refers to the best use of men, material,
money and machinery employed in business. The resources of business
are scarce so these must be utilised in the best possible manner so that
the business can get maximum benefit from their resources.
(v) Improving productivity : It is used as a measure of effeciency. Every
business enterprise must aim at greater productivity - to ensure continous
survival and growth. This objective can be achieved by reducing wastages
and making effecient use of machines and equipments, human resources,
money etc.
2. Social Objectives
Business is an integral part of society. It makes use of resources of society. It
earns profit by selling its products or services to members of society. So it
becomes obligatory on the part of the businessman to do something for the
society. The important social objective of business are as follows :
(i) Quality goods and services at Fair Price : The first social objective
of business is to provide better quality product at reasonable rice and in
proper quantity on continuous basis to consumers examples.
Example :- Consumers look for ISI mark on electrical goods, FPO mark
on food products. Hallmark on Jewellery.
(ii) Avoidance of Anti-Social and Unfair trade practices : Anti-Social
practices include hoarding, black marketing and adulteration. Making false
claims in advertisements to mislead and exploit people is an example of
unfair trade practice. Business should not indulge in such practices.
(iii) Generation of Employment : Now a days, employment is the biggest
problem of society. Business should provide employment to more and
more people living in the country. Handicapped and disabled people should
be given extra care.
(iv) Employee Welfare : Employees are a valuable asset and they make
significant contributions towards the success of business.
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