Profit can no more be the objective of a business than eating is objective of living “Discuss.

"Earning of profit cannot be the objective of business any more than the eating is the objective of living"
Do you agree weith this statement? Give reasons to support your answer.

Yes, I agre with this statement, like eating is essential for survival of any human being. Same way profit is
essential for survival of any human being, same way profit is essential and a must for survival of any
business. But a person cannot survive for a long time and cannot lead a healthy life only by eating A
person has to perform other activites also sole motive of earning profit cannot survive for a long time. to
capture a big share in market and to create the goodwill businessman must have social and individual
objective along with economic objective of earning profit. the common social and individual objectives
of business are (Explain Social and individual objective of business on page no 24-25).

'Profit earning is not the only objective of the business ? Give any four reasons to justify the
statement.

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Solution

The sole aim of earning profit has the following effects on a business :

(a) Ignores the interest of workers : Labour is one of the most important factors of production. Profit
maximisation by-passes the interest of workers in the way that they do not get fair remuneration and
hence are not motivated. In the absence of motivation, they will not work up to their full potential.
Resultantly, quality and standards of the products and services will deteriorate and will ultimately lead
to losses.

(b) Ignores the interest of customers : Customers are very important for every business in the sense that
without their existence, even thinking about business is merely a dream. Profit maximisation by-passes
their interest because goods/services are overpriced which ultimately leads to a reduction in thenumber
of customers, a reduction in the quantity of sales and thereby reduction in profits.
(c) Ignores the interest of society : Profit maximisation overlooks the interest of the society in which it
works. It may propel a businessman to indulge in unfair trade practices like hoarding back marketing etc.

(d) Ignores long-term interest of the business itself: Profit maximisation may be the objective for the
short term, but in the long term it may lead the business to a dangerous position where it could become
very difficult for the business to even survive.

Profit is essential for the survival of a business, just as eating is essential for the survival of a human
being. However, earning profit cannot be the sole objective of a business, just as eating cannot be the
sole objective of living.

A business must have social and individual objectives along with the economic objective of earning
profit to survive in the long run and create goodwill. Some reasons why profit maximization should not
be the only goal of a business:

It ignores the interests of workers by not providing fair remuneration, leading to lack of motivation and
reduced productivity.

It ignores the interests of customers by overpricing goods/services, leading to reduced sales and profits.

It ignores the interests of society by indulging in unfair trade practices.

It ignores the long-term interests of the business itself, as short-term profit maximization may lead to
dangerous positions in the long run.

While profit is a requirement for a business to survive and grow, it should not be the sole objective.
Businesses must balance economic, social, and individual goals to succeed in the long term.

Entrepreneurship is seen as a fundamental important part of modern economic & social life,

yet there's an extraordinary lack of clarity concerning what entrepreneurship is, exactly what

entrepreneurs do & what set them apart from other managers.

You're required to:

a) Discuss to what extent are entrepreneurs born & not made?

Entrepreneurs are not simply born, but rather a combination of innate traits and learned skills. While
some individuals may have a natural inclination towards entrepreneurship, the ability to successfully
start and grow a business is largely shaped by education, experience, and environmental factors.
Evidence suggests that certain personality traits, such as risk-taking, creativity, and resilience, are more
common among successful entrepreneurs [1][2]. However, these traits can also be cultivated and
developed through training, mentorship, and exposure to entrepreneurial environments [3].

Moreover, entrepreneurs require a diverse set of skills, including business planning, financial
management, marketing, and leadership. These skills are not inherent, but can be acquired through
formal education, on-the-job training, and continuous learning [4].

The environment in which an individual operates also plays a crucial role in shaping their
entrepreneurial potential. Factors such as access to capital, supportive policies, and a culture that
celebrates entrepreneurship can significantly influence an individual's decision to start a business and
their chances of success [5].

In conclusion, while some individuals may have a natural predisposition towards entrepreneurship, the
ability to become a successful entrepreneur is not solely determined by innate traits. It is the result of a
complex interplay between personal characteristics, acquired skills, and environmental conditions.
Effective entrepreneurship education and supportive ecosystems can help cultivate and nurture
entrepreneurial talent, regardless of an individual's background.

b) Account for variations in the levels of creativity in any society using three agents of

socialisation.

Variations in the levels of creativity within a society can be accounted for by examining the influence of
three key agents of socialization: family, education, and culture.

Family: The family is the primary agent of socialization and plays a crucial role in nurturing or stifling
creativity. Families that encourage exploration, independent thinking, and the expression of unique
ideas tend to foster more creative individuals. In contrast, families that emphasize conformity,
obedience, and strict adherence to social norms may inhibit the development of creative tendencies .

Education: The education system is a powerful secondary agent of socialization that can either promote
or hinder creativity. Schools that prioritize standardized testing, rote learning, and strict curricula often
fail to cultivate creative thinking skills. Conversely, educational environments that encourage problem-
solving, experimentation, and the exploration of diverse perspectives tend to produce more creative
graduates [3][4].

Culture: The broader cultural context in which individuals are socialized also influences the levels of
creativity within a society. Cultures that value individualism, risk-taking, and the open exchange of ideas
typically have higher levels of creativity compared to cultures that emphasize collectivism, conformity,
and the preservation of traditional practices [5][2].

In summary, variations in the levels of creativity within a society can be attributed to the interplay
between family socialization, educational experiences, and the prevailing cultural values and norms.
Societies that foster an environment conducive to creative expression and independent thinking are
more likely to nurture a diverse and innovative population.