A Maximizing Current Profit Objective Implies That a Company Chooses

question 53

Multiple Choice

A maximizing current profit objective implies that a company chooses

• A)to set targets whose performance can be measured quickly such as by quarter or year.
• B)to give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
• C)to set a profit goal that is often determined by its board of directors.
• D)to reduce as many non-essential costs as possible and forego investing in any further market or product research.
• E)base prices on a marginal return on investment.

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Definitions:

Natural Rate

The level at which a certain economic variable (such as unemployment or interest rate) naturally settles, in the absence of external influences.

Congressional Budget Office

A non-partisan federal agency within the legislative branch of the United States government that provides budget and economic information to Congress.

Natural Rate

Often refers to the natural rate of unemployment, which is the level of unemployment consistent with sustainable economic growth, considering factors like market imperfections.

Estimated

An approximate calculation or judgment of the value, number, quantity, or extent of something, based on available data.