GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Maximisation of profits
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Maximisation of sales
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Maximisation of owner’s wealth
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None of the above
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Detailed explanation-1: -The appropriate objective of an enterprise is. Note : Ans : Maximisation of business wealth (Wealth maximisation is the concept of increasing the value of the business in order to increase the value of the shares held by shareholders, therefore it is an objective of enterprise.)
Detailed explanation-2: -Every business is centered around the motive of earning profit. This economic objective of business helps them to generate revenue and survive in the competitive market. Profits help in wealth creation, investments, marketing, innovation, and increased social responsibility.
Detailed explanation-3: -Although, earning profit cannot be the only objective of business, its importance cannot be ignored. Every business makes an attempt to reap maximum profit as possible in the given market conditions.