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Which option shows the narrowest and incorrect understanding of an organisational objective?

Answer and explanation

Correct answer: It means only maximum profit today

The governing concept is that organisational objectives have a broader time horizon than immediate profit maximisation. An organisation must earn a reasonable profit, but it must also survive in changing conditions and grow through innovation, investment, improved quality or expansion. Thus, option B is the narrow and incorrect interpretation because it reduces the entire objective to the highest possible profit today. Option A correctly includes survival, profit and growth. Option C recognises survival as the continued existence of the organisation, and option D recognises the importance of future expansion. Profit is necessary, but it is not the only measure of organisational success.

Related tags

Organisational-ObjectivesSurvivalProfit-And-GrowthObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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