Given below are some statements relating to the economic objectives of
business. Some statements are true and some are false. Identify the true
statements:
i Creation of demand for goods is the primary objective of business.
ii. Profits are expected to be earned by businessmen in proportion to the
amount of capital invested in business.
iii. It is not always necessary for businessmen to make the best possible
use of materials.
iv. Businessmen should use profits earned from the business only for their
own living.
v. Generation of employment is the primary economic objective of
business.
Answers
Answer:
Explanation:
Ans i True, indeed Creation of demand for goods is the primary objective of business. Because when demand for goods is created businesses can make more money.
Ans ii. This is true, that Profits are expected to be earned by businessmen in proportion to the amount of capital invested in business. However, they may be more.
Ans iii. This is false, that "It is not always necessary for businessmen to make the best possible use of materials." Because businesses should use good quality raw material to make good products which are upto the mark. This comes under consumer protection laws.
Ans iv.This is false that businessmen should use profits earned from the business only for their own living. They can use such profits for other people as well. This can create good will if you do welfare for society.
Ans: v. This is false that Generation of employment is the primary economic objective of business. This depends on which sector of the economy we are talking about. If its private then their main aim is making profit.