What are the major objectives and functions of business.

 》Concept of Business:      

The literal meaning of the term business is to be busy. It is a broader term. It includes all fair or legal economic activities related to producing, selling, and purchasing goods and services. Attainment of wealth or earning profit is the primary purpose of these activities.

 》 What is meant by business?

 "Business is an enterprise engaged in the production and distribution of goods for sale in market or rendering services for a price "       OR 

 "Any legal activity undertaken or performed to earn a profit is called business."

 OBJECTIVES AND   FUNCTIONS OF   BUSINESS:  

 1) Profit Objective:

The main objective of business is to earn profit. Business people go on searching profitable channels to invest their capital. Businesses should create wealth and earn profit without harming society and fellow business people. If a business is producing only loss, then it is closed or dissolved ...                                           Following are important reasons for earning profit:                                          •) To fulfill the owner's personal needs.                                                    •) It creates the spirit of hard work.      •) For expansion and development of the business.                                  •) To earn RIZQ-E-HALAL.                      •) For increasing National income.

 2) Social Services: 

Business benefits the people by providing them with a large number of services. Business people use modern techniques to produce quality goods at lower costs. The firm facilitatessociety by providing essthe ential benefits:                 •) producing and supplying quality and cmmon goods.                           •) To provide goods according to the latest design and fashion.                 •) To provide goods at lower prices.     •) To provide goods in all areas of the country.

 3) Employment:

The business provides employment opportunities not only to the owners but also to other people. The company creates employment opportunities for the following:              •) Investors (owners)                              •) Industrial workers.                              •) Experts /professionals, e.g., doctors, professors, engineers.        •) Middlemen, traders, agents, etc.   

 4) Investment:

Another essential purpose of business is to use national savings profitably and helpfully. It provides more opportunities for Investment to the people to earn profit by investing their surplus money. Following are the methods of Investment:                    •) Owners on Investment (owner's equity).                                                  •) Investment by purchasing shares and debentures.   

 5) National Interest:

Some businesses are started to secure the national interest and strengthen the country's economy and defense system. Such types of companies are established under the supervision of the government, e.g., •) Industry of weapons for defense.    •) Modern institutions for research like PCSIR etc.

 6) Economic Development:

All business activities have their ultimate target of economic development of the country. The optimal use of local and foreign resources is possible only with the help of business. A successful and profitable business helps in the economic development of the country.        The following figure states the fact :  

 7) Innovation:

A business should use new and modern methods or tools for the production of goods. Because it will increase the production and profit, the people also get the benefits of new inventions.

 8) Use of technology: 

The use of technology is included in the objects and functions of the business because a business person can increase the production and profit margin by using the latest technology according to the company's nature.

 9) Optimum Combination: 

A businessman tries his best to make an optimum combination of available factors of production. Business activities are performed in such a way that results in the lowest cost of production. Thus, the profit of the business may be maximized.

 10) Sales Function: 

A sale is an essential function or objective of the business because the expansion in trade and profit is impossible without an increase in sales. In the words of Drucker, "There is only one valid definition of business purpose, to create customers."

 11) Benefits for Employees:

It is also the function of the business to provide a variety of benefits and incentives to the employees, e.g., bonuses, overtime payment, housing or medical facility, and Schooling facility for their children, etc.

 12) Training: 

The social function or object of the business is to provide training facilities to unskilled people. By doing so, the owners or traders provide opportunities for training, and thus, less trained people get employment in their own or various other organizations.

 13) Better Living Standards:

It is the national duty and object of business to provide better living standards to the people because the income of people increases with the expansion in business activities.

 14) Use of resources:

It is the function and object of the business to utilize the available resources like oil, gas, iron, etc. For the betterment of the people of the country.

 15) Favourable Balance of                Payment:

The function and object of business are to make the balance of payment favorable by increasing exports and decreasing imports because this position makes the country prominent globally.

In the light of the points mentioned above and discussion, we can say that all objectives and functions of business are necessary to run the business efficiently......