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In which situation are both profit and growth aspects of organisational objective visible?

Answer and explanation

Correct answer: Company starts a new production unit from profit

The governing concept is that organisational objectives can operate together rather than separately. In option A, the company first earns profit, meaning income exceeds the relevant costs. It then uses that profit to establish a new production unit, which increases capacity and represents growth or expansion. Thus both dimensions—profitability and growth—are visible in the same situation. Option B concerns a holiday and does not demonstrate either objective. Option C describes housekeeping, and option D describes a change in identity; neither proves financial success or expansion. The source of finance is important here: reinvesting earned profit links the present profit objective with future growth.

Related tags

ProfitGrowthProduction-UnitReinvestmentObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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