Business and their Objectives

Basically, business is any human activity undertaken on a daily basis in order to make money through production, distribution, purchase and sales of goods and services.

Business activities are classified on the basis of size, ownership and function. Under the basis of size, business activities are divided into two categories.

Starting with small scale business whereas small scale units require less capital. They only require small number of workers. Eg: Handloom and powerloom businesses.

Adding to, Large scale business requires huge capital. They require large number of workers and produce the goods on large scale. Eg: Manufacturing textiles in a large textile mill.

On the basis of ownership business activities may be grouped into three catogories.

Private Enterprises, an enterprise said to be aprivate enterprise where it is owned, managed and controlled by persons other than government. Public Enterprise, an entrrprise where it is owned, managed, and controlled by Government or any other agencies. Joint enterprise is said to be a joint enterprise owned, managed and controlled by Government and private enterpreneurs.

Every business enterprise has certain business objectives which regulate and generate its activities. Objectives are needed in every area where performance and results directly affects survival and prosperity of a business. They may be classified into five catogories.

Economic objective of business refer to objective of earning profit and also other objectives that are necessary to be pursued to achieve the profit objective, which includes creation of customers, regulation innovations and best possible service use of available resources. Social objectives of business, which are desired to be achieved for the benefit if the society by utilizing its scarce resources, the society expects something in return for its welfare. No activity of the business should be aimed to giving any kind of trouble of the society.

The organizational objectives denote those objectives an organisation intends yo accomplish during the course of its existence in the economy like expansion and modernization, supply of quality of goods to customers, customers satisfaction. Human objectives refers to the objectives aimed at the well being as well as fulfillment of expectations of employees as also of people who are disabled, handicapped and deprived of proper education and training. The human objectives may include economic well being of the employees, social and psychological satisfaction of employees and development of human resources. National objectives is an important role in the country, every business must have the objective of fulfilling national goals and aspirations. The goal of the country may be to provide employment opportunity to its citizens, earn revenue for its exchequer, become self-sufficient in production of goods and services, promote social justice. Business activities should be conducted keeping these goals of the country in the mind, which may be called national objectives of business.