Question:
Can profits be the sole objective of a business? Justify your answer by giving suitable reasons.
Answer:
A layman may say that profits are the only objective with which a business is carried on but a good business man cannot keep profits as his only motive. A business organization is an economic unit which makes use of various factors of production. Capital is one of the factors of production. It pays interest in the form of profits. Ur wick has put it beautifully, "Earning of profits cannot be objective of business any more than eating is the objective of living."There must be other objectives of a business which Eire non monetary but as important as monetary, like employee satisfaction, innovation, productivity, consumer satisfaction, etc.
Following reasons can be given to justify our opinion that profits cannot be the sole objective of a business.
- If we make profits to be only objective then interests of consumers, employees and society will be ignored.
- Maximum profits in the short run, may result worse for long term interest of the company.
- In present day scenario, when consumer awareness is increasing, labour laws are becoming stringent, social responsibilities of business is being highlighted, environment is being talked about, a business needs to set its objectives for satisfaction of consumers, employees, environmentalists, government etc.
Nature and Purpose of Business
Q 1.
Can profits be the sole objective of a business? Justify your answer by giving suitable reasons.
Q 2.
Explain the concept of business.
Q 3.
Explain political and legal causes of business risks.
Q 4.
What are the functions of commerce?
Q 5.
Define Profession. Discuss its salient features.
Q 6.
What are various types of industries?
Q 7.
"No business is risk free."Do you agree? Justify your answer, mentioning the nature and causes of business risk.
Q 8.
What is business risk? What is its nature?
Q 9.
Explain the characteristics of business.
Q 10.
If you need , to start doing an economic activity to earn livelihood for your family, which one would you like and why?
Q 11.
Explain any two business activities which are auxiliaries to trade.
Q 12.
Define commerce. Discuss its importance in the business world.
Q 13.
Why is business considered an economic activity?
Q 14.
State the different types of economic activities.
Q 15.
Compare business with profession and employment.
Q 16.
What is the role of profit in business?
Q 17.
Why does business need multiple objectives? Explain any five such objectives.
Q 18.
Explain with examples the various types of industries.
Q 19.
Explain the concept of business risk and its causes.
Q 20.
If one starts a business, which objective will be of utmost importance to you and why?
Q 21.
How would you classify business activities?
Q 22.
Compare business with profession and employment.
Q 23.
What factors are important to be considered while starting a business? Explain.
Q 24.
What are the hindrances in the commerce? Which agencies are used to remove these hindrances?
Q 25.
Distinguish between industry, trade and commerce.
Q 26.
Describe the activities relating to commerce.
Q 27.
Distinguish between industry, trade and commerce.
Q 28.
"Risk is the element which makes the business different from other economic activities."Do you agree? Justify your answer.
Q 29.
Explain the economic and social objectives of the business.
Q 30.
"Economic and non-economic activities don't substitute, but complementary to each other."Do you agree? Explain.
Q 31.
What are the functions of commerce?
Q 32.
"Earning of profits is the main objective of a business and other objectives are there to aid it only."Do you agree? Justify your answer.
Q 33.
Differentiate between economic and non-economic activities.
Q 34.
Differentiate between insurable risks and non-insurable risks.
