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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