ICMA Foundation- FBEM- Categorised PYQ-NCERT- Class 11 Business studies- Chapter 1-Business, Trade and Commerce
Fundamentals of Business Economics and Management
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QUESTION 1 OF 1
The objectives of business are related to ________. (June 2025)
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1 The objectives of business are related to ________. (June 2025)
� Earning profit is a leading objective, but a business must fulfill multiple objectives to survive and prosper in the long run. • Organisational objectives involve survival, profit, and growth. • It also encompasses social and personal dimensions like market standing (customer satisfaction) and worker performance/attitude (employee welfare).
�� Detailed concept-based explanation with NCERT reasoning: According to the NCERT textbook, business enterprises are part of the society and need to fulfill several objectives to survive and prosper. While earning profits is essential, a business requires multiple objectives for its sustainable growth. These include organisational objectives (like survival, whereby a business must earn enough revenues to cover costs), creating market standing (which relies heavily on customer satisfaction), and focusing on worker performance and attitude (which ties directly to employee welfare). Therefore, survival, customer satisfaction, and employee welfare are all integral objectives of a business.
� Option A → Survival is a core organisational objective, but choosing it alone neglects the social and human objectives essential for long-term prosperity. • Option B → Customer satisfaction is crucial for maintaining market standing, but it is incomplete without economic survival and employee considerations. • Option C → Employee welfare represents the human objective of a business, which alone cannot sustain the business without economic survival. (Explain only incorrect options.)
Used Choose the most suitable: • Elimination Application: → By recognizing that a modern business cannot function on a single dimension, you can eliminate the individual options. Since survival (economic), customer satisfaction (social/market), and employee welfare (human) are all recognized NCERT objectives of a business, "All of the above" logically encompasses the multidimensional nature of business goals. Final Logic: → Business objectives are multidimensional, covering economic, social, and human aspects equally.
�� Remember the mnemonic "SME" for core business dimensions: Survival (Economic), Market standing/Customer satisfaction (Social), and Employee welfare (Human).