Profit Maximization Is Not a Well-Defined Corporate Objective, Because

question 60

Multiple Choice

Profit maximization is not a well-defined corporate objective, because?

• A)It leaves open the question of which year's profits.
• B)Decreasing current returns in order to free up cash and increase future profits.
• C)Different accountants will calculate different profits.
• D)All are reasons why profit maximization is not a well-defined corporate objective.

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Definitions:

Value Judgments

Assessments based on personal views about the worth, beauty, or goodness of something rather than on measurable criteria.

Objective Concept

A notion or idea based on factual and measurable evidence rather than personal feelings or opinions.

Observable Phenomenon

Events or occurrences that can be perceived directly through the senses or with the help of scientific instruments.