Economic objectives: Business is an economic activity so their primary objectives are economic.
1. Earning profits: One of the objectives of business is to earn profits on the capital employed. Profitability refers to profit in relation to capital investment. Every business must earn a reasonable profit which is so important for its survival and growth.
2. Market standing: Market standing refers to the position of an enterprise in relation to its competitors. A business enterprise must aim at standing on stronger footing in terms of offering competitive products to its customers and serving them to their satisfaction.
Social objectives: Business is an economic activity which cannot be carried on in isolation; there arise the social objective of business. Important social objectives of modern businesses are:
1. Providing employment: One of the important social objectives of a business is to provide employment to the society. This can be achieved by establishing new business units, expanding market. etc.
2. Prevention of pollution: With the growth of industries, pollution has become a serious matter. Pollution affects the hygiene and the health of human beings and even animals. So, one of the social objectives and obligations of every business is to make efforts to prevent the pollution of air and water.
