X Ltd. has been in steel industry for past 10 years. As per recent survey by a leading financial magazine, it was highlighted that the company's capital investment has increased by 50%, there is increase in sales volume and number of employees as well.
Identify the objective of management achieved by X Ltd.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Growth
Option (1) Growth — Correct. Growth of a business is measured by an increase in sales volume, number of employees, number of products or capital investment. X Ltd. shows all of these.
Option (2) Profit — Incorrect. The passage does not talk about earnings of the company. It talks about capital investment, sales volume and employees.
Option (3) Survival — Incorrect. The company is already 10 years old and is expanding. Survival would only mean earning enough to cover costs.
Option (4) Social Objective — Incorrect. Social objective means creating benefit for society. The passage has nothing about that.
NCERT (2026-27 Edition): “Objectives of Management … Growth: A business needs to add to its prospects in the long run, for this it is important for the business to grow. To remain in the industry, management must exploit fully the growth potential of the organisation. Growth of a business can be measured in terms of sales volume increase in the number of employees,” “the number of products or the increase in capital investment, etc. There can be other indicators of growth.” |