Can profits be the sole objective of a business? Justify your answer by giving suitable reasons.

Q. Can profits be the sole objective of a business? Justify your answer by giving suitable reasons.

Ans: A layman may say that profits are the only objective with which a business is cariedon but a good business man cannot keep profits as his only motive. A business organization is an economic unit which makes use of various factors of production. Capital is one of the factors of production. It pays interest in the form of profits. Uí wick has put it beautifully, “Earning of profits cannot be objective of business any 

more than eating is the objective of living.” there must be other objectives of a business which Eiíe non monetary but as important as monetary, like employee satisfaction, innovation, productivity, consumersatisfaction, etc. 

Following reasons can be given to justify our opinion that profits cannot be the soleobjective of a business. 

1. If we make profits to be only objective then interests of consumers,employees and society will be ignored. 

2. Maximum profits in the short run, may result worse for long term interest of the company.