What Do Economists Assume Is the Fundamental Motive of Investors

question 64

Multiple Choice

What do economists assume is the fundamental motive of investors?  

• A) to maximize profit 
• B) to maximize income 
• C) to maximize the firm's growth 
• D) to maximize savings

Grasp the concept of present value and its application in accounting for long-term obligations and capital assets.

Recognize differences in financial reporting requirements between US GAAP and IFRS, especially concerning contingent liabilities and probability interpretations.

Understand the accounting treatment and financial statement presentation of cash flows, including operating, investing, and financing activities.

Grasp the concepts of deferred tax assets and liabilities and their impact on financial statements.

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Definitions:

Genetic Drift

Mechanism of evolution due to random changes in the allelic frequencies of a population; more likely to occur in small populations or when only a few individuals of a large population reproduce.

Adaptive Radiation

Rapid evolution of several species from a common ancestor into new ecological or geographic zones.

Fossil Record

The collection of fossils, which are the preserved remains or traces of animals, plants, and other organisms from the remote past, providing evidence of the history of life on Earth.

Sedimentary Rock

Rock that has formed through the accumulation and solidification of sediment, especially sediment transported by water, ice, and wind.