Practicing Success
'Profit is essential for covering cost and risk of business'. Which management objective is discussed here? |
Social Objective Organisational Objective Personnel objective None of the above |
Organisational Objective |
The correct answer is option 2- Organisational Objective. 'Profit is essential for covering cost and risk of business'. Here, profit objective which is a organisational objective is highlighted. Mere survival is not enough for business. Management has to ensure that the organisation makes a profit. Profit provides a vital incentive for the continued successful operation of the enterprise. Profit is essential for covering costs and risks of the business. Organisational objective- Management is responsible for setting and achieving objectives for the organisation. It has to achieve a variety of objectives in all areas considering the interest of all stakeholders including, shareholders, employees, customers and the government. The main objective of any organisation should be to utilise human and material resources to the maximum possible advantage, i.e., to fulfill the economic objectives of a business. These are survival, profit and growth.
OTHER OPTIONS
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