a) Profit:
Business activity is undertaken for earning profits. But it is not the sole objective of business. An enterprise does not work for the so called maximum profit. What is necessary is that a firm must try to avoid losses to that it can continue to function is the objective of a business to earn as much of profits as will cover its future risks.

 

b) Creation of customers:
Business involves transfer, sale or exchange of goods and services to satisfy the needs of customers, Business activity can be sustained only if there are enough people to busy the products. According to Peter Drucker, it is the customer who determines what a business is. The customer is the foundation of business and keeps it in existence. Thus business amounts at cerating a market for its products by meeting the needs of the customers.

 

c) Innovation:
Business is an order of growth expansion and change in the economy. This can be achieved by the business through innovation. The objectives of earning profit and expanding the market can be achieved only when business provides newer and better products. Innovation, it can increase its competitive strength and improve its image in the minds of the customers. If the business does not innovate, it cannot continue for long.