Definition of Business Firm:
A business firm refers to an organization or entity that engages in commercial activities with the primary objective of earning profits. It can be a sole proprietorship, partnership, corporation, or any other legal structure that carries out various business operations.

Objectives of a Business Firm:
The main objectives of a business firm can be categorized into four key areas:

1. Profit Maximization:
The primary objective of a business firm is to maximize its profits. Profit is the excess of revenue over costs incurred in the production and sale of goods or services. By maximizing profits, firms aim to increase the wealth of their owners or shareholders. Profitability is crucial for the survival, growth, and sustainability of a business firm.

2. Market Share Expansion:
Another objective of a business firm is to expand its market share. Market share refers to the percentage of total sales or revenue a company captures within a specific industry or market. By increasing market share, a firm can gain a competitive advantage, enhance its bargaining power, and attract more customers. Market share expansion often involves strategies such as product differentiation, competitive pricing, and effective marketing.

3. Customer Satisfaction:
Ensuring customer satisfaction is a vital objective for any business firm. Satisfied customers are more likely to become loyal, repeat customers, and advocate for the brand. By delivering high-quality products or services, addressing customer needs and preferences, and providing excellent customer service, firms can build strong customer relationships and enhance their reputation.

4. Growth and Expansion:
Business firms also strive for growth and expansion in terms of size, revenue, and market presence. Growth can be achieved through various means, such as expanding into new markets, introducing new products or services, acquiring other firms, or diversifying into related industries. By pursuing growth opportunities, firms can capitalize on economies of scale, increase their market power, and achieve long-term sustainability.

In conclusion, a business firm aims to maximize profits, expand its market share, satisfy customers, and achieve growth and expansion. These objectives are interconnected and contribute to the overall success and competitiveness of the firm in the business environment.