The Primary Operational Goal for the Firm Is To

question 45

Multiple Choice

The primary operational goal for the firm is to:

• A) maximize after-tax profits in each country where the firm is operating.
• B) minimize the total financial risk to the firm.
• C) maximize the consolidated after-tax profits of the firm.
• D) maximize the total risk to the firm.

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Definitions:

Sole Proprietorship

Business ownership in which there is no legal distinction between the sole proprietor’s status as an individual and his or her status as a business owner.

Partnership

A legal business structure where two or more individuals agree to share the profits and losses of a business.

Corporation

Legal organization with assets and liabilities separate from those of its owner(s).

Franchise

A licensing agreement where a franchisor allows a franchisee to use its brand, products, and operating methods.