Objectives or goals of business, Finance Basics

Objectives or Goals of Business

1. Profit maximization - This is a traditional and a cardinal objective of a business.  This is so for the following purpose:

  1. To its owners to earn acceptable returns. As i.e. have to not be less than bank rates + inflation + risk
  2. Therefore as to survive as via plough backs
  3. To meet its day to day obligations.

2. To maximize the net worth that is the difference between total liabilities and total assets.  This is important while:

  1. It influences company's share prices.
  2. It facilitates growth as plough backs.
  3. It boosts the company's credit rating.
  4. This is what that owners claim from the company.

3. To maximize welfare of staff - Happy employees will contribute to the success. This comprises:

  1. Transport facilities
  2. Reasonable salaries
  3. Medical facilities for the staff and his family
  4. Recreation facilities as sporting facilities.

4. Interests of customers - the company have to give quality goods at fair prices and have honest dealings along with customers.

5. Welfare of the society - the company has to sustain sound industrial relations along with the society:

  1. Ignored pollution
  2. Donation to social causes like example of Harambee contributions, building clinics etc.

6. Fair dealing along with suppliers.  A company should

  1. Ignored dishonor of obligations.
  2. Assemble its obligations on time

7. Duty to the government: A company must

  1. Pay taxes promptly
  2. Go via government plans
  3. Control under legal framework.
Posted Date: 1/29/2013 12:57:53 AM | Location : United States







Related Discussions:- Objectives or goals of business, Assignment Help, Ask Question on Objectives or goals of business, Get Answer, Expert's Help, Objectives or goals of business Discussions

Write discussion on Objectives or goals of business
Your posts are moderated
Related Questions
Bell is considering two marketing options for the Canadian launch of their internet-based video streaming service in the first quarter of 2012.   i. A  "soft" launch using prima

After read all the available information carefully, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C=100+0.50Y


(a) State the most appropriate drivers for the following direct expenses: (i) New business administration department's salary costs (ii) Medical examinations for temporary life

The construction of a highway is broken into 14 activities as shown in the following table. Draw a bar chart of this construction project. Activity ID Desc

SCENARIO You have just moved out of home and have a part-time job that pays you $18 per hour after tax (you work 20 hours a week). You also have $5000 in a savings account. You

Working Capital a) Working capital or called gross working capital also, refers as current assets. b) Net working capital refers to current assets minus current liabilities

Net Present Value Method - DCF Technique The method discounts outflows and inflows and ascertains the total present value via deducting discounted outflows from discounted inf

What is a Treasury bill? How risky is it? Treasury bills are short-term debt instruments granted by the U.S. Treasury which are sold at a discount and pay face value at maturit

If banks expect an unusually large increase in withdraws from checking deposit accounts in the near future, what would happen to the federal funds rate, borrowed reserves and nonbo