Accounting technicians scheme west africa
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- A.5.1 Primary Objectives of Business
- A.5.2 The Secondary Objectives of a Business are
| A.5 Objectives of Business Objectives are the ends which the business desires to attain. Objectives are important because they i) Indicate the purpose and aim of the business and thus justify the very existence of 5 the organisation. ii) Provide direction for the operations of the business enterprise. iii) Set standards for control of the business activities. iv) Help to coordinate decisions by the managers. v) Performance can be measured against objective of the individual unit or corporate levels. A.5.1 Primary Objectives of Business The main objective of the business enterprise is to make profit. Profit is a reward to the owners for taking the risk of establishing a business enterprise. It is also the source of growth and continued survival of the business enterprise. A.5.2 The Secondary Objectives of a Business are (a) Productivity: This shows the extent to which a business concern is able to utilize a given set of resources to attain the highest or a predetermined value of output. bi Innovation:i This is a strategic business consideration employed by a business entity to satisfy the needs of consumers better than its competitors by involving itself in the introduction of new products, new methods of production and distribution. c) Growth Objective: One of the objectives of business is expansion of its operations. This may take the form of increase in capital employed increase in market share, increase in number of people employed, etc. The purpose of the growth objective is to achieve economies of scale, enhanced competitiveness, increase the market share and overall profitability. d) Shareholder Satisfaction: This occurs when the business concerns are always looking for ways to enhance the satisfaction of employees, which in turn, enhances their contribution to the growth and competitiveness of the organisation. e) Employee Satisfaction: Forward-looking business concerns are always looking for ways to enhance the satisfaction of employees, which in turn, enhances their contribution to the growth and competitiveness of the organisation. f) Positive Public Image: This enables the organisation to obtain favourable terms, improves its image as a good corporate citizen that produces and distributes high quality as well as striving to project itself as an organisation that cares about its employees, the community and other social responsibility considerations. Download 3.37 Mb. Share with your friends:
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