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Objective of business

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Objective of business

Posted by Sunaina S 5 years, 9 months ago

CBSE > Class 11 > Business Studies

1 answers

Yaser Siddiquee 5 years, 9 months ago

The main objectives that a business might have are: 1.Survival – a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis. 2.Profit maximisation – try to make the most profit possible – most like to be the aim of the owners and shareholders. 3.Profit satisficing – try to make enough profit to keep the owners comfortable – probably the aim of smaller businesses whose owners do not want to work longer hours. 4.Sales growth – where the business tries to make as many sales as possible. This may be because the managers believe that the survival of the business depends on being large. Large businesses can also benefit from economies of scale.

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