Three Different Objectives Relate to a Firm's Profit, Which Have

question 133

Multiple Choice

Three different objectives relate to a firm's profit, which have different implications for pricing strategy. The three profit-oriented objectives include __________, managing current profit, and achieving a target return.

• A)accumulating profits
• B)managing for long-run profits
• C)reinvesting profits
• D)redistributing profits
• E)maximizing gross margin

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Definitions:

Net Capital Outflow

The difference between a nation's total investments outside the country and foreign investments within the country over a certain period.

Foreign-Currency Exchange

The act of changing one country's currency into another's for trade, travel, or investment purposes.

Budget Deficit

The financial situation where an entity's expenses exceed its revenues over a specified period, leading to borrowing or debt.

Budget Surplus

An excess of tax revenue over government spending