The Ultimate Objective of Every Firm, Such as Intel, Chevrolet

question 115

Multiple Choice

The ultimate objective of every firm, such as Intel, Chevrolet, and Sony must be to

• A) sell either to other firms or to consumers.
• B) satisfy the needs of its customers.
• C) pay out money to cover the various expenses of doing business.
• D) know that people generally buy a product and store it.
• E) make it impossible to satisfy customers.

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Definitions:

Break-even Point

The break-even point is the point at which total costs equal total revenue, meaning that a business or project is neither making a profit nor suffering a loss.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Net Margin

A profitability metric calculated as net income divided by revenue, expressing the percentage of revenue that remains as profit after all expenses are deducted.

ISO 9000

A set of international standards on quality management and quality assurance developed to help companies effectively document the quality system elements required for maintaining an efficient quality system.