Profit Maximization Is Not an Adequate Goal of the Firm

question 45

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 ignores the timing of a project's returns.
• D) all of the above are correct.

---

Definitions:

Grassroots Origins

A movement or campaign that begins and grows at the local or community level, often reflecting widespread public concern rather than top-down directives.

Black Southern Churches

Denotes religious and community institutions in the Southern United States, predominantly attended by African American congregants, playing key roles in social and civil rights movements.

Liberal Law Offices

Law firms that advocate for progressive or liberal legal policies and rights.

16th Street Baptist Church

A historical church in Birmingham, Alabama, that was the site of a racially motivated bombing in 1963 by the Ku Klux Klan, marking a pivotal event in the Civil Rights Movement.