A Company Needs Financial Objectives

question 30

Multiple Choice

A company needs financial objectives

• A)to overtake key competitors on such important measures as net profit margins and return on investment.
• B)because without adequate profitability and financial strength,the company's ultimate survival is jeopardized.
• C)to indicate to employees that financial objectives always take precedence over strategic objectives.
• D)to convince shareholders that top management is acting in their interests.
• E)to translate the company's business model into action items.

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Definitions:

Net Taxes

The net amount of money paid to the government through taxes after deducting any government transfers or subsidies received.

Supply-Side Economics

An economic theory proposing that by lowering taxes and reducing regulations to stimulate production, economic growth is achievable.

Aggregate Supply

The overall volume of goods and services that companies in a nation expect to provide for purchase during a certain timeframe.

Government Policies

Guidelines, regulations, or laws implemented by a government to influence the economy or meet social goals.