The Following Would Be an Example of a Policy, Not

question 40

Multiple Choice

The following would be an example of a policy, not a goal.

• A)Management shall minimize the firm's overall weighted average cost of capital.
• B)Management shall maximize shareholder's wealth.
• C)Management will not write uncovered options.
• D)Management will hire only happy employees.

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Definitions:

Factors Of Production

Inputs into the production process (e.g., labor, capital, and materials).

Profit

The financial gain made in a transaction or operation, calculated as the difference between the revenue earned and the costs incurred.

Short Run

A time period in economic analysis during which at least one factor of production is fixed, influencing the firm's decisions on output and pricing.

Profit

The financial gain realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.