National objectives:
An enterprise should endeavour for fulfilment of national needs and aspirations and work towards implementation of national plans and policies. Some of the national objectives are:
Various objectives of an enterprise may conflict with one another. For example, the profit maximisation objective may not be wholly consistent with the marketing objective of increasing its market share which may involve improvement in quality, slashing down of product prices, improved customer service, etc. Similarly, its social responsibility objective may run into conflict with the introduction of technological changes which may cause environmental pollution. In such situations, the manager has to strike a balance between the two so that both can be achieved with reasonable success.
In the above paragraphs, we have discussed the diuerent objectives of an enterprise. However, no comprehensive economic theory explaining the multitudes of behaviour of firms under various market conditions (perfect competition, monopoly, etc.) has been developed so far. Therefore, in rest of this book, we shall continue to assume that firms aim at maximising profits until and unless otherwise mentioned.
- To remove inequality of opportunities and provide fair opportunity to all to work and to progress.
- To produce according to national priorities.
- To help the country become self-reliant and avoid dependence on other nations.
- To train young men as apprentices and thus contribute in skill formation for economic growth and development.
Various objectives of an enterprise may conflict with one another. For example, the profit maximisation objective may not be wholly consistent with the marketing objective of increasing its market share which may involve improvement in quality, slashing down of product prices, improved customer service, etc. Similarly, its social responsibility objective may run into conflict with the introduction of technological changes which may cause environmental pollution. In such situations, the manager has to strike a balance between the two so that both can be achieved with reasonable success.
In the above paragraphs, we have discussed the diuerent objectives of an enterprise. However, no comprehensive economic theory explaining the multitudes of behaviour of firms under various market conditions (perfect competition, monopoly, etc.) has been developed so far. Therefore, in rest of this book, we shall continue to assume that firms aim at maximising profits until and unless otherwise mentioned.
In the pursuit of this objective, an enterprise’s actions may get constrained by many factors. Important among them are:
1. Lack of knowledge and information: The enterprise functions in an uncertain world where due to lack of accurate information, many variables that auect the performance of the firm cannot be correctly predicted for the current month or the current year, let alone for the future years. Similarly, the firms may not know about the prices of all inputs and the characteristics of all relevant technologies. Under such circumstances, it is very diflcult to determine what the profit maximising price is.
2. There may be other constraints such as restrictions imposed in the public interest by the state on the production, price and movement of factors. In practice, there are several hindrances for free mobility of labour and capital. For example, trade unions may place several restrictions on the mobility of labour or specialised training may be required to enable workers to change occupation. These contingencies may make attainment of maximum profits a diflcult task.
3. There may be infrastructural inadequacies and consequent supply chain bottlenecks resulting in shortages and unanticipated emergencies. For example, there could be frequent power cuts, irregular supply of raw-materials or non-availability of proper transport. This could put limitations on the power of enterprises to maximise profits.
4. Changes in business and economic conditions which become contagious due to the highly connected nature of economies, place constraints by causing demand fluctuations and instability in firms’ sales and revenues. Besides, external factors such as sudden change in government policies with regard to location, prices, taxes, production, etc. or natural calamities like fire, flood etc. may place additional burdens on the business firms and defeat their plans. When firms are forced to implement policies in response to fiscal limitations, legal, regulatory, or contractual requirements, these have adverse consequences on the firms’ profitability and growth plans.
5. Events such as inflation, rising interest rates, unfavourable exchange rate fluctuations cause increased raw material, capital and labour costs and auect the budgets and financial plans of firms. Significant constraints are also imposed by the inability of firms to find skilled workforce at competitive wages as well as due to the recurring need for personnel training.
Goods and Service Tax Book (Updated upto 20th January 2018)
GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final.
Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!!
This book is approved by Ministry of HRD Govt.of India as Students friendly book.
Click on link given to Purchase Book- https://goo.gl/ArNFJx
Author Name- CA Harshita Raichandani and CA Dhananjay Ojha
Unique features of This GST Book.
1.80+ GST chart included for quick revision of chapter.
2.Provisions presented in this book in simple manner.
3.Bullet and Heading given for Long term memorisation.
4.Updated upto 25th GST council recommendation {18th January, 2018}.
5.70+ Value added questions given with answer.
6.16 Chapters fully Coverage given.
7.Definitions of Technical term related with GST is given at one place.
8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.
Click on below Link to purchase Student friendly GST Book.
http://www.comgurukul.com/educational-books/gst-book/
GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul
GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Inte
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