The Goal of a Business Should Be

question 24

Multiple Choice

The goal of a business should be:

• A) maximization of the owners' wealth
• B) maximization of accounting profit
• C) maximization of sales
• D) maximization of assets

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Definitions:

Financing Activities

Transactions and events where cash is raised from or repaid to investors, affecting a company's equity and/or debt.

Payment of Dividends

The distribution of a portion of a company's earnings to its shareholders as determined by the board of directors.

Cash Outflow

Money or value leaving a business, typically through expenses, purchases, or other financial activities.

Selling Equipment

The process of disposing of company-owned machinery or equipment, usually to generate cash or reduce assets.