Objectives or goals are the end results towards which activities are aimed.
Objectives / Goals –
Objectives or goals are the end
results towards which activities are aimed. Formulation and definition of
objectives of an organization is the basic requirement of effective management.
According to George R. Terry, “a managerial objective is the intended goal
which prescribes definite safe and suggests direction to efforts of a manager”.
Further objectives can either he short term or long-term. As business activities
involve allocation of source resources among alternative uses, expected return must be balanced against its opportunity
cost. It is a fait accompli to
observe firms wishing to pursue several goals, of which profit maximization is
of primary objective. Every firm or an organization wish to maximize profits,
while at the same time minimizes expenses.
Tags : Financial Management - Finance – An Introduction
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