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18 BUSINESS  STUDIES importance cannot be ignored. Every 1.5 C lassification of O bjectives of business is an attempt to reap more B usiness than what has been invested, and Objectivesareneededineveryareathat profit is the excess of revenue over cost. Profit may be regarded as an influences the survival and prosperity essential objective of business for of business. Since a business has to balance a number of needs and various reasons: (i) it is a source of goals, it requires multiple objectives. income for business persons, (ii) it It cannot follow only one objective can be a source of finance for meeting expansion requirements of business, and expect to achieve excellence. Objectives have to be specific in (iii) it indicates the efficient workingevery area and sphere of business. of business, (iv) it can be taken as Objectives also enable the business the society’s approval of the utility to analyse their own performance and of business, and (v) it builds the take steps as necessary to improve reputation of a business enterprise. their performance in future. Some of However, too much emphasis these areas are described as follows. on profit to the exclusion of other objectives can be dangerous for (i) Market standing: Marinating goodwill and reputation of ones’ good business. Obsessed with profit, businessisparamounttosucceed business managers may neglect and prosper. It helps in forming a all other responsibilities towards customers, employees, investors and distinct identity in the market and is referred to as market standing society at large. They may even be in relation to its competitors. A inclined to exploit various sections of business enterprise must aim society to earn immediate profit. This at standing on stronger footing may result in the non-cooperation or even opposition from the affected in terms of offering competitive products at reasonable prices to people against the malpractices of its customers and serving them business enterprises. The enterprises to their satisfaction. might lose business and may be unable to earn profit. This is essential (ii) Innovation: Innovation is central to the growth of any business for its own survival and prosperity. enterprise. It helps business to scale up and give competitive Activity edge to the enterprise in the market. Innovation is defined as Whenabusinesspersonconceptualises an introduction of new ideas or and starts a business; runs it, scales methods in the way something is it up then why ‘maximising business profitisnotasoleobjectiveofbusiness? done or made. However, it does Discuss in your class. Give reasons. not imply that a new product is to be manufactured . Any Reprint 2026-27