Although conventionally a business is carried out with the sole aim of earning profit, however, now-a-days with the growing diversities, - Business Studies - Important Videos

Question

“Although conventionally a business is carried out with the
sole aim of earning profit, however, now-a-days with the growing
diversities, business has expanded its definition in terms of its
objectives It is no more limited to just earning profits but has
grown beyond that” Explain

Nikhitha K K · Accepted Answer

Dear student,
Business requires multiple objectives since it
has to balance a number of needs and goals related to various
aspects of society Following only one objective cannot lead
business towards excellence
Wealth
Maximisation
Concept

Wealth maximisation
concept refers 
to 
those

financial decisions that aim at maximising

the shareholders’

wealth

The primary objective of 
wealth

management for a company is to opt for those
financial

decisions that prove gainful from the point of view of

its 
shareholders

The shareholders 
are said to 
gain when the market value of the shares 
held by them 
rises,

which in turn 
takes place 
when the
benefits from the financial decisions made by the

company 
exceeds the cost involved To
achieve wealth maximisation business objectives can be classified
to five 
Five of the objectives of business are described
below (i) Profit Maximisation
(ii) Market Standing
(iii) Innovation
(iv) Productivity
(v) Social Responsibility
Following only one objective cannot lead business
towards excellence Objectives are needed in every area where
performance and results affect the survival and prosperity of
business
Regards

“Although conventionally a business is carried out with the sole aim of earning profit, however, now-a-days with the growing diversities, business has expanded its definition in terms of its objectives. It is no more limited to just earning profits but has grown beyond that”. Explain.

Business requires multiple objectives since it has to balance a number of needs and goals related to various aspects of society. Following only one objective cannot lead business towards excellence.

Five of the objectives of business are described below (i) Profit Maximisation

(ii) Market Standing

(iii) Innovation

(iv) Productivity

(v) Social Responsibility

Following only one objective cannot lead business towards excellence. Objectives are needed in every area where performance and results affect the survival and prosperity of business.
Regards