The Basic Objective of a Firm Should Be To

question 85

Multiple Choice

The basic objective of a firm should be to:

• A) engage in some specific business activity that will perform a socially and economically useful function.
• B) develop an organization to carry on the business and implement its strategies.
• C) earn enough profit to survive.
• D) All of these are basic objectives of a firm.

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Definitions:

Damages

Monetary compensation that is awarded by a court to a person who has suffered loss or harm due to the wrongful act of another.

Plaintiff

The party who initiates a lawsuit by filing a complaint against the defendant, alleging wrongdoing or breach of contract.

Remoteness Test

A legal principle used to determine if the damage suffered from a breach of contract or tort was foreseeable and therefore compensable.

Negligence Action

A legal proceeding initiated because someone failed to take reasonable care, resulting in harm or damage to another.