The Assumption That fiRms Are Profit-Maximizers Is a Simplification Because

question 78

Multiple Choice

The assumption that firms are profit-maximizers is a simplification because:

• A) firms are only interested in maximizing revenue.
• B) firms do not mind high employee attrition rates.
• C) different groups within a firm have different interests.
• D) firms need not pay high dividends to shareholders.

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Definitions:

Surface Traits

Observable qualities or characteristics of an individual's personality that can easily be inferred from behavior, as opposed to deeper, less observable traits.

Personality Characteristics

Traits that describe an individual's consistent patterns of thought, feeling, and behavior.

Dynamic Traits

Traits that describe our motivations and interests.

Temperament

Innate aspects of an individual's personality, such as sensitivity, mood, activity level, and emotional reactivity.