The Goal of the Financial Manager in a Profit-Seeking Organization

question 120

Multiple Choice

The goal of the financial manager in a profit-seeking organization is to maximize:

• A)the value of perquisites.
• B)the owners' wealth.
• C)the firm's profits
• D)the firm's earnings
• E)none of the above

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Definitions:

Technological Efficiency

A state of production where a business cannot produce more of one good without lowering the production level of another good, given current technology.

Import Protection

Measures by a government to restrict foreign imports to protect domestic industries.

Import Quotas

Restrictions set by a country on the amount or volume of goods that can be imported into the country over a set period of time.

Consumer Surplus

The discrepancy between what consumers are prepared to spend on a good or service and what they end up paying.