Shreya, Shruti and Shabnam joined together and established a partnership firm. Their main product wa a mobile phone. Besides, they also dealt in some other electronic instruments. Each one of the partners looked after one particular department. They had made it certain that every Monday they would hold a meeting and share the information on the activities of their respective departments. In one of their meetings, they decided that each member would tell something special on which they should focus their attention. The three special things told by all the three of them were as given below:
(i) Shreya: In order to compete with rivals, we shall have to focus our mind on Marketing Research.
(ii) Shruti: We should keep clear of the anti-social activities like Adulteration, Hoarding and Profitering.
(iii) Shabnam: We have to establish our business in the society.
The members of society are our customers from whom we earn our profit. Hence, we should contribute to the activities of public importance; namely - Dispensaries, Educational institutions, etc.
(a) To which aspect of business are concerned the three special things told by the three partners, given in the above paragraph?
(b) State the context points given in the statements of the three partners.
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Answers
Answer:
Shreya is focusing on ' Economic Objectives ' of business. Economic objectives of business are centred around the personal profit of the business and besed on one slogan ' to earn maximum profits'.
(i) Profit earning : Business activities are undertaken primarily to earn profit , which is the excess of income over expenses . Every business must earn a reasonable profit to survive and grow . A business . cannot survive without making profits . Indeep , profit is a measure of the success in business . Profit is essential for covering costs and risks of the business.
(ii) Growth : Every business needs to add to its prospects in the long run . For this it is important for business to grow . Management must exploit fully the growth potential of the organisation. indicators of growth of a business are - (a) increase in sales turnover , (b) increase in the number of products and empolyees , etc.
On the other hand , Vrinda is focusing on " Social Objectives" of business.
Social objectives of business are centred around the interests of society and based on the slogan of ' social welfare '. It is necessary that business should also pursue certain objectives desired by the people of the society because business is an integral part of society.
(i) Avoidance of anti - social and unfantrede practices : A businessman should avoid hoarding , black- marketing , over - charging , misleading advertisments , etc . such unfair paractices may destroy the goodwill and image of the business and may be punishable also.
(ii) Community service : Large business units should undertake community services like setting up charitable dispensaries , schools , etc.
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