GE CH1 SEM 1 Flashcards
WHAT ARE THE Requisites of a successful business 3PTS
. Before establishing any business both long range and short range objectives should be
established.
2. Planning should be given due importance. To plan is to propose a forward programming
for guiding the future functioning of an enterprise.
3. Proper location and layout of the plant and suitable size of the firm contribute
substantially to the success of a business system
WHAT ARE THE Requisites of a successful business 4PTS
The organization must be clearly defined. It should be adequately manned with
competent personnel.
5. It must have an up-to-date knowledge of the latest developments in the field of
technology.
6. Research in all aspects of business, e.g., product research for ensuring success in the
long run.
7. Last but not the least is the requisite of efficient management
Objectives of Business
Economic
objectives
Social
objectives
Human
objectives
National
objectives
Global
objectives
global obj
Global Objectives: The global goals of business are to meet the problems and challenges
arising in a global marketplace. Some of the global goals include:
i. Exporting goods: Making goods and services available that are competitive on a
worldwide scale, and exporting them to the needy nations should be done by a
business in order to earn reputation around the globe and in achieving a trade
balance situation for its home country.
ii. Promotion of Equality: decreasing inequities between wealthy and developing
countries by increasing business and trade activities in developing nations can be
done by the firm
national obj
National Objectives: National objectives of business are the goals of fulfilling these
goals and aspirations on a national level. National goals and aspirations include things
like:
i. Promote national self-sufficiency and exports: In general, a corporation should
manufacture and market those products and services that support exports and
replace imports. A company can therefore guarantee national self-sufficiency and
help the country achieve a good balance of payments situation.
ii. Production as per national priorities: Business must create the commodities and
services that are in demand in the whole country since it will lead to national growth
and reduction in dependence on the other nations.
iii. Payment of taxes and debts on time: A business firm must be pro active in paying
the taxes and debts on time, the money generated from taxes is used in the
development of the nation and society.
iv. Proper Utilization of Natural resources: Each nation has access to some natural
resources that are essential in its development. In order to cut imports and conserve
foreign cash, a corporation must make an effort to employ local resources
effectively with small wastage and proper utilization.
social obj
Social objectives: Business goals that are intended to assist and benefit the society are
referred to as social objectives. The following are some of the main social goals:
i. Producing and supplying high-quality goods and services: The primary purpose
of business is to meet societal requirements. It is the company’s first and main social
goal. Products produced and supplied and services should be of higher quality and
should be offered at reasonable prices.
ii. Creation of employment opportunities: A business must provide employment
opportunities for society’s members because it is a social institution.
iii. Fair remuneration to employees: The success or failure of the business depends
on its employees and not on the way the business is conducted. Employees are more
valuable since they perform the key functions from which a business runs,
therefore they must receive fair compensation for the work they do.
iv. Stay Away from Anti-Social Behavior: A company must behave honorably
towards its customers, suppliers, competitors, and other stakeholders in order to
make a lawful profit. Antisocial behaviours like speculation, hoarding, adulteration,
etc. must not be present.
v. Protection of environment: An environment is where a business is created, runs,
and develops. Pollution and environmental degradation are problems brought on by
the expansion of modern enterprises. Therefore, a business needs to run responsibly
and preserve the natural resources from degradation.
vi. Social and Community Service: A company needs to build up goodwill in the area
where it is located and conducts business. It is expected to give back to the
neighbourhood by getting involved in charity and social causes in order to enhance
its reputation and goodwill.
human objectives
Human Objectives: The term “human aims of business” primarily refers to goals that
are intended to protect the welfare and interests of its employees. The following are some
of the main human goals:
i. Fair Return to Owners: Every business’s owner invests their money with the hope
of receiving some kind of return. Therefore, a firm must ensure fair returns to
business owners or shareholders.
ii. Fair wages for employees: A company’s most important asset is its workforce.
Their diligence and effectiveness play a significant role in a company’s success.
They must therefore receive just compensation in line with their merit.
iii. Employee Welfare: Since employees give their all to a company’s success, it must
respect the dignity of labour and treat them as partners rather than just as parts inside
the machine. They should be provided with good working conditions and fair
rewards.
iv. Learning and Development Programs: Employees should be provided with
proper training and development sessions before assigning a task to them, this will
motivate them and save them from any big accident in the workplace.
v. Job Satisfaction: For a firm to be productive and profitable, employee motivation
is crucial. Therefore, a company must make sure that its people are satisfied with
their jobs and opportunities coming there way.
economic obj.
Economic objectives: The term “economic objectives of a firm” refers to the goal of
making a profit as well as actions that directly influence profit earning objective. Primary
economic objectives of business are stated below:
i. Profit making: The survival, expansion, reputation, and stability of the company
depend on its capacity to turn a profit. If a company has losses for a number of
years, it will not be able to last for very long. Generating sufficient earnings is the
main objective of a business.;
ii. Creation of customers: Customers are essential to a company’s existence,
expansion, and success. By meeting their demands with the proper amount of goods
and services at the proper price, at the proper time, and at the proper location,
businesses may attract more customers.
iii. Innovation: In order to meet changing consumer demands, innovation is the
key focus for providing new goods, materials, production and distribution
techniques, and services to the customers. Introducing innovation enhances the
existing products and helps the business to stand out from the competitors.
iv. Increasing market share: Businesses must outperform their rivals in terms of
product quality, accessibility, and cost. To maintain its market position, it must raise
the standard of its products and services with lower prices and enhanced the
distribution system.
