Which of the Following Is the Primary Goal of a Firm

question 83

Multiple Choice

Which of the following is the primary goal of a firm?

• A) Maximize sales
• B) Maximize net income
• C) Maximize earnings per share
• D) Maximize shareholder wealth

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Definitions:

Tax Revenues

The income that is collected by governments through the imposition of various taxes, which is used to fund public services and policies.

Deadweight Losses

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved, leading to a net loss in societal welfare.

Incentives

Motivational factors or mechanisms that encourage individuals or groups to behave in a certain way or to take specific actions.

Lump-Sum Taxes

Taxes that are the same amount for everyone, regardless of the taxpayer’s income level or ability to pay.