Objectives of Business

Importance and Characteristics of Business

1. Business Ethics and Commercial Knowledge M VADIVEL B.COM – PA Sri Ramakrishna College of Arts and Science Coimbatore – 06 .

2. IMPORTANT CHARACTERISTICS OF A BUSINESS Economic activity Buying and Selling Continuous process Profit Motive Risk and Uncertainties Creative and Dynamic Customer satisfaction  Social Activity Government control

3. Economic activity

4. Buying & Selling

5. Continuous process

6. Profit Motive

7. Risk and Uncertainties

8. Creative and Dynamic

9. Customer satisfaction

10. Social Activity

11. Government Control

12. Economic activity Business is an economic activity of production and distribution of goods and services. It provides employment opportunities in different sectors like banking, insurance, transport, industries, trade. it is an economic activity corned with creation of utilities for the satisfaction of human wants. Buying and Selling The basic activity of any business is trading. The business involves buying of raw material, plants and machinery, stationary, property. Continuous process Business is not a single time activity. It is a continuous process of production and distribution of goods and services. A single transaction of trade cannot be termed as a business. A business should be conducted regularly in order to grow and gain regular returns.

13. Profit Motive Profit is an indicator of success and failure of business. It is the difference between income and expenses of the business. The primary goal of a business is usually to obtain the highest possible level of profit through the production and sale of goods and services. It is a return on investment. Risk and Uncertainties Risk is defined as the effect of uncertainty arising on the objectives of business. Risk is associated with every business. Business is exposed to two types of risks such as Insurable risk and Non-Insurable risk. 1. Insurable risk : Taxes, Change in the volume of expected sales and Salaries. 2. Non-Insurable risk : Changes in trends & tastes of customers etc.,

14. Creative and Dynamic Modern business is creative and dynamic in nature. Business firm has to come out with creative ideas, approaches and concepts for production and distribution of goods and services. Customer satisfaction The phase of business has changed from traditional concept to modern concept. Social Activity Business is a socio-economic activity. Both business and society are interdependent. Modern business runs in the area of social responsibility.

15. Government Control: Business organisations are subject to government control. Government ensures that the business is conducted for social good by keeping effective supervision and control by enacting and amending laws and rules from time to time. Important Acts Framed by Govt. The Competition Act 2002 FEMA Act – 1999 Indian Companies Act – 1956 (Old), 2013 (New) Consumer Production Act 1986

16. Profession

17. Profession A profession is an occupation founded upon specialized educational training, the purpose of Public policy and the nature of administrative responsibility.

18. Characteristics of a Profession It demands possession of a body of specialised knowledge and extended practical training. It renders an essential social service. It demands continuous in service training of its members. It involves a code of ethics. It sets up its own professional organization. It assures its members a professional career. It has a truth and loyalty. It has a transparency of work.

19. Characteristics of Employment Passionate Communication Skills Goal Oriented Organized Adaptable Creative

20. Nature of Business, Profession & Employment Business Business is defined as an activity involving regular production (or) purchase of goods and services for sale, transfer and exchange of objective of earning profit. Profession Profession is an operation for which the individual to aquire a special knowledge and skills. Employment The economic activity rendered by are perfect to another under a contract of service for remuneration is called employment.

21. Objectives of Business Human Objectives Social Objectives National Objectives Economic Objectives Global Objectives

22. I. Human or Individual Objectives Human or individual objectives refer to the objectives related to the individual needs of the employees of an organisation . As employees are one of the most valuable resources for an organisation , satisfaction of their objectives is very important.

23. Major Individual (or) Human objectives: To provide healthy and safe working conditions. To pay fair and competitive salaries and perks. To provide opportunities for personal growth and development of employees. To provide reasonable security of service. To provide various financial and non-financial incentives in order to motivate the workers. To encourage employees to take initiative and participation in management.

24. II. Social Objectives Social objectives refer to the objectives, which are desired to be achieved for the benefit of the society. Major Social Objectives: Supply of Quality products at Fair Prices Generation of Employment Opportunities Protection of Environment Welfare of Employees

25. III. National Objectives: every business must have the objective of fulfilling national goals and aspirations. The goal of the country may be to provide employment opportunity to its citizen, earn revenue for its exchequer, become self-sufficient in production of goods and services, promote social justice. Business activities should be conducted keeping these goals of the country in mind, which may be called national objectives of business.

26. Major National Objectives Creation of Employment Production According to National Priority Contribute to the Revenue of the Country Export Promotion

27. IV. Economic Objectives: Business is an economic activity and its objectives are mainly economic in nature. Main Economic Objectives: Profit Earning – Every entrepreneur undertakes business activities primarily to earn profits. Survival – Every business aims to ensure that it continues to survive and exist in the future. Growth – A business needs to add to its prospects in the long run. Other Economic Objectives: 1. Creation of Customers   2. Innovation 

28. V. Global Objectives Major Global Objectives: 1. Raise General Standard of Living Growth of business activities across national borders makes quality goods available at reasonable prices all over the world. 2. Reduce Disparities among Nations Business should help to reduce disparities among the rich and poor nations of the world by expanding its operation. By way of capital investment in developing as well as underdeveloped countries it can foster their industrial and economic growth.

29.  3. Make Available Globally Competitive Goods and Services Business should produce goods and services which are globally competitive and have huge demand in foreign markets. This will improve the image of the exporting country and also earn more foreign exchange for the country.