Profit Maximisation Is Not an Adequate Goal of the Firm

question 41

Multiple Choice

Profit maximisation is not an adequate goal of the firm when making financial decisions because

• A)it does not necessarily reflect shareholder wealth maximisation.
• 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.

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Definitions:

Nonverbal Cues

Refers to communication without words, such as gestures, facial expressions, and body language, that convey messages or emotions.

Individual Gestures

Movements or signals made by a person, often with the hands or head, to convey an idea, feeling, or instruction.

Interpersonal Communication

The process of exchanging information, ideas, and feelings between two or more people through verbal or non-verbal methods.

Nonverbal Behavior

Communication expressed through body movements, facial expressions, and other physical gestures rather than words.