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Nature, Purpose and scope of Business — OCM STD 11 Commerce — Question

Gujarat BoardEnglish MediumSTD 11 CommerceOCMNature, Purpose and scope of Business5 Marks
Question
Explain in detail various objectives of Business.
✓

Answer

  • Introduction. :.
    • Any activity done with the objective of profit of business.
    • Who is performing these activities? people are performing these activities.
    • Society is consisted of people. So it can be said that business exists in society.
    • If there had not been human society, who would performs business with whom? It can be certainly said that any business unit comes in existence in human society only and it develops through it.
  • Existence of business is not at all possible without society :
    • business dealing are carried out among people of society. This is clarified through the following details.
    • (1) Business unit is established is fulfill the needs of society.
    • (2) Business unit flourishes by using means of society such as labourers ( human labour ), capital and material.
    • (3) Customers creditors, employees, owners, etc. associated with business unit, are a part of society.
    • (4) If business activity is carried on without caring for interest of various groups then it will be boycotted in society and its existence will be under risk.
    • From the above details it is very clear that business is there because is society. the stage when business non – economic fails to fulfill the needs of society, then that business will not sustain long time.
  • Social objectives of society : (Social objectives).
    • It is very clear fact that Business is exposed because of society.
    • Existence of business is not possible in the absence of society.
    • It is said that “ Business is Business and Business is people. “ means there is motive of profit in every business, bur people are in business.
    • Society is associated with business. No business is done by ignoring the interest of people. Main social objective of business are as under.
      • Objective to perform social responsibility :
        • In the present days due to consumer education, consumer association and state control consumers have become aware of their interest.
        • Various classes of society such as owners, employees, consumers. Creditors, government etc. are associated with business units.
        • The interest of each group ids different.
        • It I necessary to maintain balance between them and perform business activities Besides business should obey the laws of environment, consumer protection, act.
        • Factory laws, employees social welfare laws and honestly follow provision off laws.
      • Objective to provide employment opportunity :
        • Thickly populated India faces crucial problem of unemployment.
        • To reduce this problem, government provides various facilities and incentive to establish industry in backward areas.
        • Khadi Rural industry Commission established by government makes attempts to increase employment opportunity through industry.
      • Objective to adopt fair trade practices :
        • Government has passed MRTP Act (Monopoly Restrictive Trade policy act ) for welfare of customers and society to observe whether business units adopt fair trade practices.
        • Black marketing of products, hoarding of thing in illegal manner, creation of artificial shortage, misleading advertisement etc. are unreasonable and unfair trade practices.
      • Objective to provide quality Goods and Services :
        • To sustain in business, customers should be provided with quality product and services, at reasonable price and at proper time.
        • In the current time along with sale of good quality product, important services too are provided. e.g. Free delivery means things at the doorstep of a customer, free repairing, rearrangement of things, re – packing etc. facilities are provided.
      • Other objective :
        • Other social objectives included new researches in the field of production to create identity and prestige in society, to be helpful in development program of government to be helpful in the activities done by government e.g. cleanliness campaign, creation of latrine etc.
      • Conclusion :
        • Business is a child of society.
        • It comes in existence of society.
        • Society nurtures it. It is sustained due to society.
        • Society does not allow it to last for longer time if the business fails to perform its social responsibility properly.

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