Which of the Following Objectives of a Business Is the Most

question 174

Multiple Choice

Which of the following objectives of a business is the most important?

• A) To engage in some specific business activity which will perform a socially and economically useful function.
• B) To develop an organization to carry on the business and implement its strategies.
• C) To earn enough profit to survive.
• D) All three of these objectives are equally important, because a failure in any one could lead to a total failure of the business.

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Definitions:

Isocost Line

Graph showing all possible combinations of labor and capital that can be purchased for a given total cost.

Input Combinations

The various mixes of inputs or factors of production a firm can use to produce a given level of output.

Total Cost

The total amount of money spent on creating goods or services, encompassing both constant and changeable expenses.

Isocost Line

A line representing all combinations of the inputs that cost the same total amount for production.