Since a business has to balance a number of needs and goals, it requires multiple objectives.
Business is dependent on many people's satisfaction whose objectives for being involved in it are different and many times conflicting. Owners want profits, employees want good working conditions and remuneration, investors want good return and consumers want good quality product. Therefore, a business needs to have multiple objectives. Some of these objectives are given below:
(a) Market standing: Business can survive for a longer period only if it is able to capture a big share in the market and has market standing.
(b) Innovation: It means developing new products and their multiple uses. Old customers can be maintained and new can be attracted by innovation only.
(c) Improving productivity: Every business enterprise must aim at greater productivity by making optimum use of available resources.
(d) Earning profit: One of the objectives of business is to earn profits on the capital invested. Every business must earn a reasonable profit to survive and grow.
(e)Optimum use of physical and financial resources: Every business requires physical (plant, machine, office etc) and financial resources (money or funds) to produce goodsand services; the business enterprise must aim to use them efficiently.
(f) Workers performance and attitude: Ev.ery business enterprise must aim at improving its workers' performance and creating positive attitudes towards workers. It will boost the morale of the employees.
(g) Social Responsibility: A business is a part of society and so it must meet the expectations of the society. It can set goals in the areas of the environmental protection, supply of desired quality of products, employment generation etc.

Outsourcing has emerged as a way of doing business due to global competitive pressures for higher quality products at lower costs, ever demanding customers and emerging technologies. Need for outsourcing can be understood from the benefits which are given below:
(a) Focusing of Attention: Business firms are realizing the importance of focusing on core areas where they have distinct ability and core competence and contracting out the rest of the activities to their outsourcing partners. A business organization needs to decide its core areas and non-core areas. Once they outsource non-core areas, they can focus their attention on selected activities. It will increase efficiency and effectiveness.
(b) Quest for Excellence: Outsourcing enables the firms to attain excellence in two ways:
(a) By focusing on activities selected, their excellence in those activities increases,
(b) They excel by extending their capabilities through contracting out the remaining activities to them who excel in them.
(c) Cost Reduction: In the age of globalization, cost reduction is of vital importance to survive in the market. Division of labour not only enhances quality but also reduces cost. For example, India is preferred as an outsourcing destination because of cost factors.
(d) Growth through alliance: When some activities are outsourced then these alliance partners invest for the outsourced activities. Business can be expanded by same amount of investible funds as now these funds are to be invested in limited number of activities.
(e) Fillip to Economic Development: Outsourcing stimulates entrepreneurship, employment and exports in the host countries. For example, in India there has been remarkable growth in entrepreneurship, employment and exports that today India is an undisputed leader in software development and IT enable services.
But outsourcing is not an unmixed blessing. It has its own limitations. Some of which are discussed below:
(a) Confidentiality: When a business opts for outsourcing, it has to share a lot of vital information and knowledge. This information may be leaked by the outsourcing partner. It may be against the outsourcing firm. It is also possible that the outsourcing partner starts a business of same line after getting such information.
(b) Ethical Concerns: Many a time, outsourcing makes use of child labour and violates labour laws to reduce costs. They also discriminate in wages on the basis of sex.
(c) Sweat Shopping: A firm which goes in for outsourcing actually transfers 'doing' skills rather than 'thinking' skills. Therefore, they do not create skilled manpower in developing countries but just take maximum benefit of low cost labour by transferring non intellectual tasks.
(d) Resentment in their Home Countries: Outsourcing is being disliked by people in developedcountries because the jobs which they could get are being transferred to developing countries through outsourcing. The problem is still more severe if there is problem of unemployment in home country of outsourcing firm.

It is incorrect to assume there can be only one objective of a business. Peter F. Drucker remarked, "To Manage a business is to balance a variety of needs and goals. And this requires multiple objectives." Thus, the management of a business must set objectives, in every 'key area' that influences its survival and growth. Peter F. Drucker has suggested eight key areas where objectives must be set. These are discussed below:
(i) Market standing: It refers to the market position of a business in relation to its competitors, e.g. position of 'Liberty' against that of 'Bata'. A dynamic enterprise must aim at increasing its market standing by offering better products at competitive prices and winning permanent customers.
(ii) Innovation: It means the introduction of new products, new uses of existing products, or new methods of production. Innovations are essential for a business enterprise to grow in the competitive world. For example, LG introduced door cooling technology in refrigerators.
(iii) Productivity: It is the ratio between output and inputs in the production process. Productivity is often used as an indicator of the efficiency of an organization. More productivity will lead to reduced cost of production. (iv) Employee satisfaction: An organization must also aim at moulding the attitudes of employees so that they may contribute better towards organizational goals. It is also important to provide such working conditions to employees that they feel satisfied in working with and for the organization.
(v) Resources-Physical and financial: A business enterprise requires many physical and financial resources. A business must aim at procuring these resources.
(vi) Managerial performance: A team is entrusted with the tasks of planning, organizing, staffing, directing and controlling which is called management. Management needs to set targets in the areas of planning, organizing, staffing, directing and controlling and also overall targets for the development of the organization.
(vii) Social responsibility: A business is a part of society. There are some responsibilities of business towards society like generating employment, using ecofriendly methods of production, etc. I must fulfill these responsibilities.
(viii) Profitability: Consider all the above objectives. They are either not possible to be attained without profits like consumer wants good quality. So for market standing we need to provide good quality product which can be provided only when we have enough profits. Similarly, employees want good monetary and non-monetary benefits which are dependent on profits. Some other objectives contribute towards higher profits like innovation and managerial performance. Therefore, we can conclude that the main aim of a business is to earn profits and other aims are either an outcome of the profits or profits are not possible without these.

Major problems faced by the small scale industries are:
(1) Finance
(2) Raw material
(3) Idle capacity
(4) Technology
(5) Marketing
(6) Infrastructure
(7) Under Utilization of Capacity
(8) Project Planning.
Small scale industries play a vital role in the economic development of our country. This sector can stimulate economic activity and is entrusted with the responsibility of realising various objectives i.e., generation of more employment opportunities with less investment, reducing regional imbalances etc. Small scale industries are not in a position to play their role effectively due to various constraints. The various constraints, the various problems faced by small scale industries are as under:
(1) Finance: Finance is one of the most important problems confronting small scale industries. Finance is the life blood of an organisation and no organisation can function properly in the absence of adequate funds. The scarcity of capital and inadequate availability of credit facilities are the major causes of this problem.
Firstly adequate funds are not available and secondly, entrepreneurs due to weak for .onomic base, have lower credit worthiness. Neither they are having their own resources nor are others prepared to lend them. Entrepreneurs are forced to borrow money from money lenders at exorbitant rate of interest and this upsets all their calculations.
After nationalisation, banks have started financing this sector. These enterprises are still struggling with the problem of inadequate availability of high cost funds. .These enterprises are promoting various social objectives and in order to facilitate them working adequate credit on easier terms and conditions must be provided to them.
(2) Raw Material: Small scale industries normally tap local sources for meeting raw material requirements. These units have to face numerous problems like availability of inadequate quantity, poor quality and even supply of raw material is not on regular basis: All these factors adversely affect the functioning of these units. Large scale units, because of more resources, normally corner whatever raw material is available in the open market. Small scale units are thus forced to purchase the same raw material from the open market at very high prices. It will lead to increase in the cost of production thereby making their functioning unviable.
(3) Idle Capacity: There is under utilization of installed capacity to the extent of 40 to 50 per cent in case of small scale industries. Various causes of this under utilization are shortage of raw material problem associated with funds and even availability of power. Small scale units are not fully equipped to overcome all these problems as is the case with the rivals in the large scale sector.
(4) Technology: Small scale entrepreneurs are not fully exposed to the latest technology. Moreover, they lack requisite resources to update or modernise their plant and machinery Due to obsolete methods of production, they are confronted with the problems of less production in inferior quality and that too at higher cost. They are in no position to compete with their better equipped rivals operating modem large scale units.
(5) Marketing: These small scale units are also exposed to marketing problems. They are not in a position to get first hand information about the market i.e., about the competition, taste, liking, disliking of the consumers and prevalent fashion.
With the result they are not in a position to upgrade their products keeping in mind market requirements. They are producing less of inferior quality and that too at higher costs. Therefore, in competition with better equipped large-scale units they are placed in a relatively disadvantageous position.
In order to safeguard the interests of small scale enterprises, the Government of India has reserved certain items for exclusive production in the small scale sector. Various government agencies like Trade Fair Authority of India, State Trading Corporation and the National Small Industries Corporation are extending helping hand to small scale sector in selling its products both in the domestic and export markets.
(6) Infrastructure: Infrastructure aspects adversely affect the functioning of small scale units. There is inadequate availability of transportation, communication, power and other facilities in the backward areas. Entrepreneurs are faced with the problem of getting power connections and even when they are lucky enough to get these they are exposed to unscheduled long power cuts.
Inadequate and inappropriate transportation and communication network will make the working of various units all the more difficult. All these factors are going to adversely affect the quantity, quality and production schedule of the enterprises operating in these areas. Thus their operations will become uneconomical arid unviable.
(7) Under Utilization of Capacity: Most of the small-scale units are working below full potentials or there is gross underutilization of capacities. Large scale units are working for 24 hours a day i.e., in three shifts of 8 hours each and are thus making best possible use of their machinery and equipments. On the other hand, small-scale units are making only 40 to 50 percent use of their installed capacities. Various reasons attributed to this gross under utilization of capacities are problems of finance, raw material, power and underdeveloped markets for their products.
(8) Project Planning: Another important problem faced by small scale entrepreneurs is poor project planning. These entrepreneurs do not attach much significance to viability studies i.e., both technical and economical and plunge into entrepreneurial activity out of mere enthusiasm and excitement.
They do not bother to study the demand aspect, marketing problems, and sources of raw materials and even availability of proper infrastructure before starting their enterprises. Project feasibility analysis covering all these aspects in addition to technical and financial viability of the projects, is not at all given due weightage. Inexperienced and incomplete documents which invariably results in delays in completing promotional formalities. Small entrepreneurs often submit unrealistic feasibility reports and incompetent entrepreneurs do not fully understand project details.
Moreover, due to limited financial resources they cannot afford to avail services of project consultants. This results in poor project planning and execution.
(9) Skilled Manpower: A small-scale unit located in a remote backward area may not have problem with respect to unskilled workers, but skilled workers are not available there. Firstly, skilled workers may be reluctant to work in these areas and secondly, the enterprise may not afford to pay the wages and other facilities demanded by these workers.
Besides non-availability of entrepreneurs are confronted with various other problems like absenteeism, high labour turnover indiscipline, strike etc. These labour related problems result in lower productivity, deterioration of quality, increase in wastages, and rise in other overhead costs and finally adverse impact on the profitability of these small-scale units.
(10) Managerial: Managerial inadequacies pose another serious problem for small scale units. Modern business demands vision, knowledge, skill, aptitude and whole-hearted devotion. Competence of the entrepreneur is vital for the success of any venture. An entrepreneur is a pivot around whom the entire enterprise revolves.
Many small scale units have turned sick due to lack of managerial competence on the part of entrepreneurs. An entrepreneur who is required to undergo training and counseling for developing his managerial skills will add to the problems of entrepreneurs.
Of course, increase in number of units, production, employment and exports of small-scale industries over the years are considered essential for the economic growth and development of the country. It is encouraging to mention that small-scale enterprises account for 35%of the gross value of the output in the manufacturing sector, about 80%of the total industrial employment and about 40% of total export of the country.

In the industrial policy 1991, the Government of India introduced four major reforms in public sector.
1. Reduction in number of industries reserved for public sector: This number is reduced from 17 to 8 and to 3 industries only in 2001. These three industries are atomic energy, arms and rail transport.
2. Memorandum of Understanding (MOU):Under this govt. lays down performance targets for the management and gives greater autonomy to hold the management accountable for the results.
3. Disinvestment: Equity shares of public sector enterprises were sold to private sector and the public. It was expected that this would lead to improved managerial performance and better financial discipline.
4. Restructure and revival: All public sectors, sick units were referred to Board of Industrial and Financial Reconstruction (BIFR). Units which were potentially viable were restructured and which could not be revived were closed down by the board.

Departmental stores are basically large, fixed establishments that deal in a Wide variety of products. The following points highlight the features of a departmental store.
(a) Central locations: Department stores are generally located in central areas so as to attract a large number of customers.
(b) Defined hierarchy: The management in departmental stores follows the same hierarchy that is generally followed in any joint stock company. That is, the top management consists of a board of directors, with the managing director, the general manager and the department managers under it in that order.
(c) Absence of middlemen: Departmental stores purchase goods directly from manufacturers and sell them to customers. Thus, they eliminate the role of middlemen.
(d) Centralised purchase with decentralised sales: In a departmental store, the purchases from manufacturers are handled by a single division that follows a centralised purchase policy.On the other hand, the sales are handled by the respective sections of the departmental store, which follow a decentralised policy for sales.

Pollution control is necessary for preserving and improving the quality of environmental resources. As business activities such as production, transportation, distribution, storage and consumption are often assumed to cause the maximum destruction to society's resources, a need arises for adopting pollution control measures. Following are some of the reasons why business enterprises need to adopt pollution control measures.
(a) Reduced health hazards: Pollutants in the environment cause diseases such as cancers and respiratory problems. Thus, pollution control measures will not only help in reducing the incidence of diseases but also help people enjoy a good and healthy life.
(b) Reduced risk of liability: Enterprises are often held responsible for polluting the environment and are asked to compensate. Pollution control helps in reducing the risk of such liabilities.
(c) Cost savings: Efficient pollution control mechanisms help in reducing the cost of waste disposal and the cost of cleaning up production plants. This in turn helps firms to reduce their costs.
(d) Improved public image: An increase in the education level has made people more aware about environmental problems. As a result, they have started realising the need to protect the environment. Thus, business enterprises which adopt pollution control measures enjoy a good reputation in the society.
(e) Other social benefits: Pollution control helps a firm to enjoy various other benefits such as cleaner surroundings, better quality of life for its employees as well as owners and increased availability of good quality resources.

Stages in the formation of a company: The formation of a company involves the following four stages:
1. Promotion,
2. Incorporation,
3. Subscription of capital,
4. Commencement of business.
These four stages are relevant for formation of a public limited company. For a private limited company, only the first two stages are needed.
(i) Promotion: Promotion stage includes all the steps right from the identification of a business opportunity till the company is formed. All the tasks during the stage of promotion are performed by a promoter.
(ii) Incorporation of the company: It means registration of the company under Companies Act, 1956. This second stage involves the following steps:
1. Filing of documents: An application to the registrar for incorporation must
(i) Memorandum of Association.
(ii) Articles of Association or statement in lieu of the prospectus (in case table A is adopted by Public Limited Company).
(iii) Written consent of proposed directors.
(iv) Agreement (if any) with proposed managing director, manager, etc.
(v) Copy of registrar's letter approving the company's name.
(vi) Statutory declaration.
(vii) Notice of the exact address of the registered office
2. Payment of fees: Along with the above documents, necessary fees is to be paid.
3. Certificate of Incorporation: The registrar issues a certificate of incorporation after being satisfied. Certificate is a conclusive evidence of regularity of incorporation of a company irrespective of any deficiency in its registration.
(iii) Capital subscription: In the stage, following steps are required to be followed by public company to raise funds from the public:
1. SEBI approval;
2. Filling of prospectus or statement in lieu of prospectus;
3. Appointment of bankers, brokers and underwriters;
4. Minimum subscription;
5. Application to stock exchange.
(iv) Commencement of business: In this stage, public company makes an application (along with some documents) to registrar for issue of "Certificate of Commencement of Business". The registrar issues the certificate after being satisfied. The company can start its business activities from the date of issue of the certificate.

The World Bank is an International Financial Institution that was established in 1944 at the Bretton Woods Conference
The following are some of the main objectives behind the setting up of the World Bank
(a) To facilitate the task of reconstruction of the war-affected European countries.
(b) To focus on the development of underdeveloped nations of the world.
(c) To encourage investments in infrastructure development, agriculture, health and industry;
(d) To eradicate poverty, increase the income of the poor and provide technological support
The following are some of the affiliates of the World Bank:
(a) MIGA: MIGA, or the Multinational Investment Guarantee Agency, was established in April 1988 with the objective of encouraging foreign direct investments in the less developed nations ofthe world. It also aims at insuring investors against political and non-commercial risks and providing advisory services.
(b) IFC: The IFC, or the International Finance Corporation, was formed in 1956 as a separate legal entity to provide finance to the private sector in developing nations. Although the IFC is an affiliate of the World Bank, it has its own funding, besides functions that are managed independently.
(c) IDA: The IDA, or the International Development Association, was established in 1960with the affiliation to the World Bank. The basic objective ofthe association is to provide loans and grants on a soft-loan basis to the less developed member countries-it aims at providing loans at concessional rates to the member countries whose per capita income is very low. It is because of this objective that the IDA is also known as the World Bank's soft-loan window