Q.Explain the economic and social objectives of business.

Business pursues two complementary sets of goals — ones tied to its own survival and profit, and ones tied to its responsibility toward the wider society.

Business objectives are grouped under two broad heads:

Economic objectives (connected to the business's own financial health):

1. Earning profit — the foremost objective, rewarding risk and funding survival/expansion.
2. Creation of customers — the business must continually attract and retain buyers.
3. Innovation — improving products/processes to stay competitive.
4. Optimum utilisation of resources — minimising waste of capital, labour, and material.
5. Survival and growth — long-term continuity and expansion of the enterprise.

Social objectives (connected to the business's responsibility to society):

1. Supplying quality goods/services at fair prices.
2. Fair dealing with all stakeholders — employees, suppliers, customers, competitors.
3. Generating employment for the people the business needs.
4. Contributing to social welfare — fair wages, safe conditions, taxes, community initiatives.
5. Avoiding unfair/restrictive trade practices such as hoarding, black-marketing, or misleading advertising. …