Profit Maximization as a Goal Is Not Ideal Because It

question 109

Multiple Choice

Profit maximization as a goal is not ideal because it does NOT directly consider

• A) risk and cash flow.
• B) cash flow and stock price.
• C) risk and EPS.
• D) EPS and stock price.

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Definitions:

Hot-Stove Rule

A management principle suggesting that discipline should be immediate, clear, consistent, and impartial, similar to touching a hot stove.

Discipline Principle

A concept in management that emphasizes the importance of enforcing rules and maintaining order within an organization.

Alternative Hypotheses

Hypotheses that suggest there is a statistically significant difference between groups or variables, as opposed to the null hypothesis.

Null Hypothesis

A default hypothesis that assumes no significant difference or effect between groups or variables in a statistical test.