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Why is earning profit considered as only one of the objective of business?
Wiki User
∙ 9y ago
Earning money is a businesses main objective because it has investors that expect a return on their money. When businesses don't make money they stop existing.
Wiki User
∙ 9y ago
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Why is earning profit considered as one of the objective of business finance?
Well, every business finance anywhere in the world is guided by profit motivation. Without profit motivation, no business finance can be fruitful and the organisation is bound to be debarred from growth and natural expansion. In competetion scenario,no organisation can even survive without the goal of earning profit. The organisation is answerable to the share holders, as the later would not be foolish to retain shares in a loss making organisation.Since profit in business covers the cost of production and also create a surplus for undertaking expansion and diversification work and leads to the survival of business. Hence, it is considerd as one of the objective of business finance.
Why is earning profit considered as the only one of the objectives of business?
Because profit is the only one that keeps the doors open.
What is the primary goal of the business?
Profit earning
Why is earning profit considered as only one of the objectives of business?
Managers have a duty to their investors to make money. When they fail at this, they could be sued by their investors.
Why is profit maximisation not a reasonable financial objective?
People in business do need to make a profit, or their business will fail, but profit is not everything. Profit made by illegal means can result in going to jail, for example. Profit made by socially destructive means (even if they are legal) harms the society in which you live. Short term profit is not always compatible with long term profit. So, there is a bigger picture.
Why is earning profit considered as only one of the objectives of a business?
Not really its the only objective of every business. It's a prior or u can say most important objective of business. Once you start earning profit then you can achieve associated objectives to it easily. In result, business will grow further.
Why Business is doing for earning profit?
there is no man that thinks business without earning a profit.
Why is earning profit considered as one of the objective of business finance?
Well, every business finance anywhere in the world is guided by profit motivation. Without profit motivation, no business finance can be fruitful and the organisation is bound to be debarred from growth and natural expansion. In competetion scenario,no organisation can even survive without the goal of earning profit. The organisation is answerable to the share holders, as the later would not be foolish to retain shares in a loss making organisation.Since profit in business covers the cost of production and also create a surplus for undertaking expansion and diversification work and leads to the survival of business. Hence, it is considerd as one of the objective of business finance.
Why is earning profit considered as the only one of the objectives of business?
Because profit is the only one that keeps the doors open.
What is the primary goal of the business?
Profit earning
What is the functions of strategic business units?
profit earning
The balance sheet shows whether or not the firm achieved its primary objective of earning a profit?
False
Why is earning profit considered as only one of the objectives of business?
Managers have a duty to their investors to make money. When they fail at this, they could be sued by their investors.
Can profit be regarded as the sole objective of business?
nop!
What other objectives might a business have besides earning a profit?
wala lang
What is the earning power in Canada?
Earning power is typically used for companies, not countries. It refers to a business's profit earning potential, which is calculated by analyzing a number of metrics.
What is a business organization?
a business organization is a group or a unit of people working together with a commen objective of profit maximization.but profit maximization is not the only objective..they also satisfy human needs and wants by producing goods and services
