Profit Maximization Does Not Adequately Describe the Goal of the Firm

question 7

Multiple Choice

Profit maximization does not adequately describe the goal of the firm because

• A) profit maximization does not require the consideration of risk.
• B) profit maximization ignores the timing of a project's return.
• C) maximization of dividend payout ratio is a better description of the goal of the firm.
• D) A and B.