The Main Challenge of Establishing the Goal of the Firm

question 46

Multiple Choice

The main challenge of establishing the goal of the firm is that:

• A)Flexibility of accounting rules allow different firms to measure profit in different ways
• B)Each firm has different set of stakeholders,hence will define stakeholder value differently
• C)Each enterprise has a distinct business purpose
• D)The goal of the firm is not directly observable

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Definitions:

Emotional Mind

A state of mind characterized by emotion-driven thoughts and behaviors, as opposed to logic or reasoned thinking.

Games

Structured forms of play, usually undertaken for enjoyment, entertainment, or sometimes as a tool for education.

Characteristics

Features or qualities that serve to identify or distinguish someone or something.

Defensiveness

A psychological reaction that occurs when an individual feels threatened or challenged, leading to behaviors that protect their self-esteem or justify actions.