1.
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Traits of business
Activities: A business consists of various
activities basically economical and non-economical.
2.
Profit: The primary goal of business is to make
profit for its owners. It is the main incentive for starting a business. Other
goals of business can be growth, survival, market leadership, efficiency,
innovation, social responsibility and corporate citizenship.
3.
Customers: Customers occupy a central place in
business. Customer need satisfaction is the key to profit generation. Business
exists to serve customers.
4.
Competition: Competition is an important
characteristic of a modern business. Globalization and liberalization has
brought competition everywhere in business. The world is becoming one big
market.
5.
Diversification: Mechanization, automation and
computerization have led to increase in the size of business enterprises. This
has resulted in diversified product portfolio.
6.
Change: business is constantly undergoing change
due to technological advances, information technology revolution and changing
environment. It needs to manage change.
Objectives of Business
Business organizations can have multiple goals.
1.
Profit: Profit is excess of income over
expenditure. It is the primary goal of a business. It is the main incentive of
a starting a business.
2.
Growth: business should grow over a period of
time in terms of sales, market share, product diversification and profits.
Stagnant businesses tend to die in the long-run.
3.
Survival: Business should stay alive to thrive.
Carpet business in Nepal is pursuing survival goal in the hope of seeing better
days in the coming years.
4.
Leadership: Business should strive for market
leadership through continuous technological innovation and quality
improvements.
5.
Efficiency: Business should aim for higher
productivity through reduced cost of operation.
6.
Social responsibility: Business should safeguard
the interests of its stakeholders including employees, customers and the
society. It should use power for the good of society and remain a part of
society.
7.
Corporate citizenship: Business should comply
with the laws of the land and develop good government-business relations for
the corporate citizenship.