Profit Maximization Is NOT an Adequate Goal of the Firm

question 97

Multiple Choice

Profit maximization is NOT an adequate goal of the firm when making financial decisions because:

• A)it does not necessarily reflect shareholder wealth maximization.
• B)it ignores the risk inherent in different projects that will generate the profits.
• C)it can over-emphasize a project's short-term returns.
• D)All of the above.

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Definitions:

The Joint Commission

An independent, not-for-profit organization that accredits and certifies healthcare organizations and programs in the United States to ensure quality and safety.

Morphine IV

An intravenous administration of morphine, a potent opioid analgesic used for severe pain management.

Onset

The beginning or start, especially regarding the initial manifestation of the symptoms of a disease or condition.

Duration

The amount of time that something lasts or continues.