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:

Ethical Dilemma

A situation in which a person is forced to choose between two morally right or two morally wrong actions, with no clear resolution that satisfies all ethical considerations.

Identifying Options

The process of exploring and assessing various paths or solutions available for decision-making or problem-solving.

Collecting Facts

Refers to the process of gathering verifiable information or data.

Personal Values

Core beliefs or principles that individuals hold, which guide their behavior and decision-making.