Rahul started a business of preparing and supplying sweets through home delivery at a place that is used both for production and as a showroom for sale in New Delhi. He made a plan forecasting the sales of different types of sweets in various areas of New Delhi for each month of the year to earn a profit of 15% on capital employed. He set a sales target of ₹1000000 in the current year with an 8% increase every year. He set the criteria of selecting suppliers from whom he would make purchases of raw material. The planning paid off and the business was able to achieve its targets.

Identify which of the following is indicated in the above passage.

Both 1 and 2

The correct answer is option 3- both 1 and 2.

He set a sales target of ₹1000000 in the current year with an 8% increase every year. - Objective

He set the criteria of selecting suppliers from whom he would make purchases of raw material- Policy