Q.Why does a business need clearly stated objectives? State any two reasons.

A business is a large, coordinated effort involving many people and departments, so without a stated common purpose there is nothing to align their work around.

Of the several reasons the chapter lists, any two suffice: (i) objectives give the organisation direction, letting everyone work towards a shared purpose; and (ii) they help coordinate the work of different departments so they do not pull in different directions.

A business needs clearly stated objectives for several reasons, of which any two may be stated:

1. Direction — objectives tell everyone in the organisation what the business as a whole is working towards, so effort is not scattered in different directions.
2. Coordination — with several departments (production, sales, finance, personnel) working together, a shared objective gives them a common purpose to align around.
3. Motivation and commitment — a specific, understood objective gives employees something concrete to work towards.
4. Basis for planning and policy-making — plans regarding production, pricing, and staffing all flow from what the business is trying to achieve.
5. Standard for measuring performance — objectives act as a yardstick against which actual results can later be compared.