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If an organisation invests part of its earnings in research and new products which objective is it trying to fulfil?

Answer and explanation

Correct answer: Growth

The governing concept is organisational growth. A business does not grow only by earning current profit; it must also invest in research, innovation and improved or new products. Such investment can increase future sales, strengthen competitiveness, enter new markets and expand the scale of operations. Hence option A, growth, is correct. Employee leave in option B is related to personnel administration and is not the purpose of product research. A community feast in option C may be a social activity but does not represent systematic organisational expansion. Office cleaning in option D is routine maintenance. Research expenditure may reduce present earnings temporarily, yet it can support long-term growth and survival.

Related tags

GrowthResearchNew-ProductsInnovationObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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