The Ultimate Objective of Every Firm, Such as IBM, Hewlett-Packard

question 164

Multiple Choice

The ultimate objective of every firm, such as IBM, Hewlett-Packard, JC Penney, and Cengage Learning, must be to

• A)sell either to other firms or to consumers.
• B)satisfy the needs of its customers.
• C)pay out money to cover the various expenses of doing business.
• D)know that people generally buy a product and store it.
• E)make it impossible to satisfy customers.

Understand the impact of changes in depreciation estimates and methods on financial statements.

Analyze and calculate gains or losses on the disposal of property, plant, and equipment.

Perform and understand the calculations for depletion and its impact on financial statements.

Recognize the implications of property, plant, and equipment on financial ratios, specifically total asset turnover.

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Definitions:

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something.

Free From Risk

A state where there is no potential for loss or any harmful consequences, often considered ideal but difficult to achieve in practice.

Reflexive Modernity

A theory in sociology that suggests modern society is increasingly characterized by reflection and change, affecting traditional institutions and lifestyles.

Expands Ability

The process or intervention aimed at increasing the skills, resources, or capacities of individuals or systems.