Economic objectives of business mainly focus on earning profit and achieving other goals that support profit-making, such as creating customers, innovation, and efficient use of resources.
Profit EarningProfit is the lifeblood of business, necessary for survival in a competitive market. It helps businessmen earn a living and expand their business by reinvesting profits.
To achieve profit, businesses must also focus on:
(i) Creation of customersA business cannot survive without customers. It must provide quality goods and services at reasonable prices and attract more customers through marketing activities.
(ii) Continuous innovationsBusiness must adapt to changes by improving products, production, and distribution methods. Innovation helps in reducing costs and increasing sales, leading to higher profits.
(iii) Best possible use of resourcesBusiness should use resources like men, materials, money, and machines efficiently by reducing wastage, using machines properly, and employing skilled workers.