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A business earns a reasonable profit after covering its costs. Which organisational objective does this represent?

Answer and explanation

Correct answer: Profit

Profit is an organisational objective in which a business earns income greater than its costs. A reasonable profit also helps the business survive and expand in the future. Survival means continuing operations, while growth means expanding the size or activities of the business; neither is the same as profit. Exam tip: identify the excess of income over cost as profit.

Related tags

ProfitOrganisational ObjectivesManagementBusiness StudiesClass 12Objectives Of ManagementNature And Significance Of ManagementClass 12 Mcq

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