ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Generally, profit motive is considered to be the primary objective of business. But profit-making is not the sole or only objectives of a business. Every business enterprise has to lay down its multiple objectives to justify its existence. 1.

Detailed explanation-2: -A for-profit organization is one that operates with the goal of making money. Most businesses are for-profits that serve their customers by selling a product or service. The business owner earns an income from the profit and may also pay shareholders and investors from the profits.

Detailed explanation-3: -Profit is the money a business pulls in after accounting for all expenses. Whether it’s a lemonade stand or a publicly-traded multinational company, the primary goal of any business is to earn money, therefore a business performance is based on profitability, in its various forms.

Detailed explanation-4: -The main objective is always to earn a profit.

Detailed explanation-5: -The main objectives that a business might have are: Survival – a short term objective, probably for small business just starting out, or when a new firm enters the market or at a time of crisis. Profit maximisation – try to make the most profit possible – most like to be the aim of the owners and shareholders.