business firm objective

Objective of business firmTapen GuptaHIM Kala Amb




Objective of firm
Profit maximization
Sales or revenue maximization
Maximization of satisfaction
Security of profit
Growth maximization
Managerial utility maximization
Customer satisfaction
Wealth maximization
Profit maximization
TR-TC
TR = Total revenue
TC = Total cost
Essential for the survival of business
Greater predictive ability
Strongest motive
Common goal
Sales or revenue maximization
Financial institution (index of performance)
Profit fig. annually
Salaries & slack earning of the top mgr. are linked with sales
Routine personal problems are more easily handed
Sales growing (growing mkt. share & greater competitive strength
Maximization of satisfaction
Society
Customers
Employees
Security of profit
Higher the risk higher the profit
Steady flow of porfit
Growth maximzation
Maximization of promoting rate
Expansion of the firm
Managerial utility maximization
Mgr. seeks to maximise their own utility
Minimum level of profit
Satisfy shareholder keep mrg. Unchanged
Expansion of staff


Customer satisfaction
King of the mkt.
Wealth maximaization