Lesson-1 introduction, meaning and importance of management 0 Objectives

LESSON - 10
OBJECTIVES OF A BUSINESS
10.0 OBJECTIVES:
The objectives of this lesson are:

to know the meaning of Business

to know the objectives of Business

to know the obligations of Business
STRUCTURE:
10.1
Introduction
10.2
Business
10.3
Characteristics of Business
10.4
Objectives
10.4.1 Economic Objective
10.4.2 Social Responsibility
10.5
Summary
10.6
Key words
10.7
Self - Assessment Questions
10.8
Reference Books.
10.1 INTRODUCTION:
Business is an adventure. Business men themselves proclaim in that their main object of
business is to earn profits, but it has been found that a truly successful business cannot afford
to keep profits as its sole objective. The purpose of business is to create a customer. It is the
customer who determines what a business is. The customer is the king in the market. Business
aims at meeting the needs of the community by ensuring a continuous supply of goods and
services to its members who are customers. Business should aim welfare of its personnel share-
holders, other investors.
10.2 BUSINESS:
Business activity has become an integral part of modern life. It is defined as, “ the regular
production or purchase and sale of goods undertaken with the object of earning profits and
acquiring wealth through the satisfaction of human wants”

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10.2
Centre for Distance Education
Acharya Nagarjuna University
Since business activity involves the undertaking of risk, it is often rightly described as an
adventure. This adventure involves the investment of resources in pursuit of some objectives
calling for the supply of goods and services that the community needs. Business activity consists
in systematically finding and exploiting opportunities. Those engaged in business have the
important function of looking for business potential and converting problems into opportunities. If
they succeed in the endeavour, they are rewarded with extraordinary return.