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In which situation is the profit aspect of the organisational objective correct but incomplete?

Answer and explanation

Correct answer: The company earns profit but makes no plan for survival and growth

The governing concept is that profit is an essential organisational objective, but it must be considered together with survival and growth. Profit provides funds for operations, replacement of resources, investment and development; however, a company that focuses only on present profit and makes no provision for changing markets, competition, technology or future expansion may not remain viable. Option A is therefore correct: its profit performance is valid, but the organisational objective is incomplete because survival and growth are ignored. Option B reflects responsible profit-making, while C addresses growth and D supports social and long-term organisational success. Neither is an example of an incomplete objective.

Related tags

ProfitOrganisational-ObjectiveSurvival-And-GrowthObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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