If Managers Do Not Choose to Maximize Profit, but Pursue

question 56

Multiple Choice

If managers do not choose to maximize profit, but pursue some other goal such as revenue maximization or growth,

• A) they are more likely to become takeover targets of profit-maximizing firms.
• B) they are less likely to be replaced by stockholders.
• C) they are less likely to be replaced by the board of directors.
• D) they are more likely to have higher profit than if they had pursued that policy explicitly.
• E) their companies are more likely to survive in the long run.

---

Definitions:

Desacralization

The process of rendering something that was once regarded as sacred or special to be ordinary or commonplace.

Desalinization

The process of removing salt from seawater or brackish water, making it suitable for drinking or irrigation.

Contamination

The process or state of making something impure or unsuitable by contact or mixture with something unclean, bad, or harmful.

Overweight People

Individuals having more body fat than is optimally healthy, generally measured by a body mass index (BMI) over the healthy range.