What is the main objective of a Business? Shall profit be the only and sole purpose of a business?

What is the main objective of a Business? Shall profit be the only and sole purpose of a business?

It is clearly stated that the main purpose of all business activities is to earn a profit. Profit is a surplus of business and it accrues and is then distributed to the owners of the business. Business has to pay wages to workers who are employed. People invest money in the business to get retained. Retain is profit from the business. This is awarded to investors for taking the risk. Profit is the motive for the investor who serves and runs the business and it is also the stimulation effort of the business for growth and its survival.

What is the main objective of a Business? Shall profit be the only and sole purpose of a business?
What is the main objective of a Business? Shall profit be the only and sole purpose of a business?

For every kind of business organization, profit is often regarded as a motive for the entrepreneurs and it measures the overall performance of the business.


  • Profit is the tool for measuring and evaluating business efficiency and productivity at the managerial competence.

  • It helps strategic managers to take proper decisions and actions which in turn are effective as they are able to combine and utilize the available resources and are able to sustain the organization with growth.

  • Business efficiency is expressed in terms of percentage of profit, sales volume, capital employed, and market value of corporate shares.

  • Outside investors are eager to know the profit of the firm and to make an assessment about their commit funds as effective utilization of funds is possible only in the business entity.

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