Objectives of Business
A business objective is what is central to the existence of the business entity. It is the reason why it exists It is generally believed that business activity is carried on only for profit. Business persons themselves proclaim that their primary objective is to produce or distribute goods or services for a profit However, it is widely accepted nowadays that business enterprises are part of society and need to have several objectives, including social responsibility to survive and prosper in the long run. Profit is found to be the leading objective but not the only one. Although earning profit cannot be the only objective of business, its importance cannot be ignored. Every business is an attempt to reap more than what has been invested and profit is the excess of revenue over cost. Profit may be regarded as an essential objective of business for various reasons. Besides being the income of the business promoters and owners, profits are the main source of funds for expansion of business. Profits also decide the goodwill enjoyed by the entity in the market. However, it must be remembered that too much emphasis on profit - making would make the entity seem reckless. Business managers keen only on profit-making find themselves risking the reputation of the entity and the goodwill of the entity among its employees, suppliers and other stakeholders. Besides, every business entity should have a mission statement which is not only commercially sound but also provides the entity a reason for its existence and an identity to be proud of.