Why Assume That Firms Maximize Profit, When It Is Easy

question 8

Essay

Why assume that firms maximize profit, when it is easy to find companies that pursue other goals such as saving rain forests (Ben and Jerry's) and sponsoring Mister Rogers (Sears)?

Understand the narrative techniques and elements of Japanese handscrolls.

Understand the definition and process of controlling within management.

Identify the financial metrics and tools used to assess a company's health.

Distinguish between different types of managerial controls (feedback, feedforward, concurrent, and steering).

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Definitions:

Multinational Firms

Companies that operate in multiple countries, managing production or delivering services in more than one country.

Social Expectation

A societal norm that sets the standards for the behavior that individuals within a group, society, or culture are expected to follow.

Late

Pertains to occurring, acting, or done after the usual, expected, or planned time.

Success

The achievement of set goals, objectives, or desired outcomes, often measured by performance, achievement, or fulfillment.