How Many Objectives And Functions Of Business

Objective or functions of Business means the purpose for which the business is established or run. following are some important objectives or functions of business;

Profit Objective; The main objective of business is to earn profit. Businessman go on searching profitable channels to invest their capitals. Business should create wealth and earn profit without harming the society and fellow businessman. if a business is producing only loss then it is closed or dissolved .Following are important reasons for earning profit.

  • To fulfill the personal needs of the owner.
  • It create the sprite of hard work.
  • For expansion and development of the business.
  • To earn RIZQ-E-HALAL.
  • For increasing national income.
  • Social Services;Business benefits the people by providing them large number of services. Businessman use modern techniques to produce quality goods at lower cost. Business facilitates the society by providing it following important services,Production and supply of quality and standard goods.
  • To provides goods according to the latest design and fashion.
  • To provide goods at lower price.
  • To provide goods in all areas of the country.
  • To save and society from harmful effects.
  • To help  and encourage the cultural activities.
  • Production and supply of quality and standard  goods
  • To provide goods according to latest design and fashion
  • To provide goods at lower prices and to provide goods in all areas of the country,and to save the society from harmful effects e-g pollution etc
  • to help and encourage the cultural activities
  • Employment ,Business provide employment opportunities not only to owners but also to other people.Business creates employment opportunities for the following.
  • Investors( Owners)
  • Industrial Workers.
  • Expert professionals e-g doctors, professor, engineers, accountants etc.
  • Middleman,traders agents etc.
  • Employees of supporting institutions eg bankers ,insurers,transporter etc.

Investment ;Another important purpose of business is to use national savings in profitable and useful way. it                   provide more opportunities of investment so that people can earn profit by investing their idle money. Following are           the method of investment.

  • Owners own investment ( Owners equity)
  • Investment by purchasing shares and debentures.
  • Investment in the shape of partnership,Musharika or modaraba.

 National interest;

Some business are started with view to secure the national interests and to strengthen the economy and defense                   system of the country. such type of business is established under the supervision of the government e-g.

  • Industry of weapons for defense.
  • Modern institutions of research like PCSIR etc.

 Economic development;

All business activities have their alternate target of economic development of the country.the optimal use of local                and foreign resources is possible only with help of business. a successful and profitable business helps in economics            development of country. Following figure stats the fact;

         Economic development >More national income>More employment>More investment>Availability of                                   goods>Favorable balance of payment and trade.

 Innovation;

A business should use new and modern methods or tools for the productions of goods .Because, it will not only                    increase the production and profit but the people also get the benefits of new inventions.

 Use of technologies;

The use of technology is included in the objects and functions of the business.Because, a businessman can increase             the production and profit margin by using latest technology according to the nature of business.

 Optimum Combination; A businessman tries his best to combine the factors of production in such a way that                 results in the lowest cost of production.Thus ,the profit will be maximum.

 Sales function;Sale is very important function and object of the business.Because the expansion in business and               increase in profit  is impossible without sale.

 Benefits For employee;It is also the function of business to provide the variety of benefits and incentives to the              employees(e-g) bonus, overtime payment,housing or medical facilities and schooling facilities for their children etc.

Training; The social function and objects of the business is to provide training facilities to unskilled people.By                   doing so, the owner or traders provide opportunities to educated and less educated persons to get employment in                 their own or various other organization.

Better living standers, Use of resources, Favorable balance of payment are also important elements And objects Of             Good business.