A Firm's Fundamental Goal Is

question 207

Multiple Choice

A firm's fundamental goal is

• A) different for each firm.
• B) to make a quality product.
• C) to maximize profit.
• D) to gain market share.
• E) to decrease its employment of workers in order to cut its costs.

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Definitions:

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project.

IRR

Internal Rate of Return, a financial metric used to estimate the profitability of potential investments.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent or salaries.

Operating Cash Flow

The cash generated from the normal operating activities of a business within a specific time period.