Question

Radhika is running a small scale business of manufacturing decoration

items in Delhi. Every year she contributes 10% of her profit to Manyata

Foundation, a popular NGO in Noida which supports the programs based

on senior citizens healthcare and carrying out activities for the minthe

hospitals such as entertainment programs, festival celebrations and many

more dayto day activities.Identify and explain the type of objective of

business being fulfilled by Radhika by providing financial help to Manyata

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Answer 1

don't know

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Answer 2

Radhika is fulfilling the Social Objective of Business by providing financial help to Manyata.

Explanation:

• Social objectives are those objectives of the business, which are required to be achieved for the advantage of society. Since business functions in society by consuming its scarce resources, society demands something in return for its welfare. No activity of the business should be intended at giving any kind of distress to society.

• The social objectives of a business may be reviewed as follows:

1. Production of quality goods:

• The objective of a business is not only to deliver goods to society but also to provide goods and services of superior quality.  

• The business should also try to enhance the quality of goods and services constantly.  

• A business may earn a decent profit by selling tainted goods. But the business cannot flourish for a long time like this.

2. To charge fair prices:

• The social objective of a business is not only to offer quality goods to society but also at rational prices.  

• Unjustified profits made by increasing the prices of the goods may not last long.

3. To provide employment:

• The social objective of a business is also to supply employment to society.  

• With the expansion of business, the need for employees rises.  

• Thus, the business requires the skills of good employees. In this way, the business provides employment to society.  

4. To provide regular and fair returns to investors:

• It is also a social objective of business to provide consistent and impartial returns to investors.  

• Investors devote their money and endure risk. So, investors must be appropriately compensated.

5. To promote the progress of society:

• Business is an important segment of society.  

• The society arranges for a regular market for goods and services of the business apart from elements of production.