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After earning a profit, an organisation invests a part of its profit in research and development (R&D). Which organisational objective of management is strengthened the most by this action?

Answer and explanation

Correct answer: Growth objective

Research and development can lead to new products, improved technology and future business expansion. Therefore, it most directly strengthens the growth objective. It is not primarily the profit-earning objective because the profit has already been earned and is being reinvested for long-term expansion. Exam tip: Associate research, innovation and expansion with the growth objective.

Related tags

Management ObjectivesGrowth ObjectiveResearch And DevelopmentProfit ReinvestmentBusiness ExpansionObjectives Of ManagementNature And Significance Of ManagementBusiness Studies

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