Nature and Purpose of Business

Since a business has to balance a number of needs and goals, it requires multiple, objectives.
Business is dependent on many people's satisfaction whose objectives for being involved in it are different and many times conflicting. Owners want profits, employees want good working conditions and remuneration, investors want good return and consumers want good quality product. Therefore, a business needs to have multiple objectives. Some of these objectives are given below:

• Market standing: Business can survive for a longer period only if it is able to capture a big share in the market and has market standing.
• Innovation: It means developing new products and their multiple uses. Old customers can be maintained and new can be attracted by innovation only.
• Improving productivity: Every business enterprise must aim at greater productivity by making optimum use of available resources.
• Earning profit:  One of the objectives of business is to earn profits on the capital invested. Every business must earn a reasonable profit to survive and grow.
• Optimum use of physical and financial resources: Every business requires physical (plant, machine, office etc) and financial resources (money or funds) to produce goods and services; the business enterprise must aim to use them efficiently.
• Workers performance and attitude: Every business enterprise must aim at improving its workers performance and creating positive attitudes towards workers. It will boost the morale of the employees.
•  Social Responsibility: A business is a part of society and so it must meet the expectations of the society. It can set goals in the areas of the environmental protection, supply of desired quality of products, employment generation etc.