Firms Have the Option of Maximizing Sales Revenue or Maximizing

question 195

Multiple Choice

Firms have the option of maximizing sales revenue or maximizing profits.If a firm chooses to maximize sales, then it will produce

• A)more output and charge a lower price.
• B)the same output and charge a lower price.
• C)less output and charge a higher price.
• D)less output and charge a lower price.

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Definitions:

Operating Activity

Tasks and transactions related to the core business functions of an organization, such as selling products or services and manufacturing.

Cash Received

The total amount of cash a company collects from its various sources, including operations, financing, and investing activities, during a period.

Indirect Method

A method of computing the net cash provided by operating activities that starts with net income and adjusts it to a cash basis.

Operating Activities

These are the day-to-day actions that are involved in running a business which affect the cash flow but are not investing or financing activities.