The creation of good and satisfaction of the needs of the customer is a crucial purpose of the business. In the long run, the survival of the business completely depends upon the market share captured by the business. They are the result of the hard work of the businessman to satisfy the needs of the customers. “ Profits are not generated out of thin air. In the words of Drucker, “There is only one valid definition of business purpose to create a customer. Profits likewise show the scale of stability, efficiency, and advancement of the business organization. Profit guarantee a consistent stream of capital for the modernization and augmentation of business activities in the future. Profit is necessary for growing and expanding business activities. Just as a plant cannot survive without water, similarly a business cannot sustain without profit. The main objective of any business is to earn a profit. Profit is the extra income over the expenses. They are as follows: 1] Profit Earningīusiness is a set of activities undertaken with the prospect of sale for the purpose of earning a profit. Let’s understand the economic objectives of the business. Hence, its purpose is to show economic results. We learned in the previous topic that business is an economic activity.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |