Question

explain earning profit objectives of a business organisation?​

Answer 1

Answer:

The purpose and objectives with which a business concern is established and run depend upon many factors. They depend largely on the socio-economic-political set-up of the country within which the organisation exists.

For Example – In capitalist countries like U.S.A. profit maximisation is the main objective of business organisation because of their belief in profit as the mainspring of economic activity in a free enterprise economy. But in the socialist countries the objective cannot be profit maximisation. In U.S.S.R., the main objective of a business unit is maximum output rather than profit.