Selecting Profit Maximization as the Primary Goal of the Firm

question 61

Essay

Selecting profit maximization as the primary goal of the firm may not increase its value,because a profit-only focus has several drawbacks.List and describe these drawbacks.

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Definitions:

Latin

An ancient Italic language of the Roman Empire, used historically in scholarship and as a liturgical language of the Catholic Church.

Projection

Psychological defense mechanism in which unacceptable or threatening impulses or feelings are seen as originating with someone else, usually the target of the impulses or feelings.

Defense Mechanism

Psychological strategies brought into play by individuals, groups, or even nations to cope with reality and to maintain self-image.

Infidelity

Refers to the act of being unfaithful or violating a commitment or trust in a romantic relationship.