The Paramount Goal of a Firm Is to

question 62

Multiple Choice

The paramount goal of a firm is to

• A) maximize profit.
• B) maximize sales.
• C) maximize total revenue.
• D) minimize costs.
• E) force its competitors into bankruptcy.

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Definitions:

Joint Stock Company

A type of business entity owned by shareholders where the stock can be bought and sold on stock exchanges.

Perpetual Existence

A corporate structure characteristic where a company continues indefinitely, unless dissolved, regardless of changes in ownership or management.

Implied Duration

Estimated time that represents how long it takes for the price of a fixed-income investment to be repaid by its internal cash flows.

Business Trust

A legal arrangement where assets are managed by trustees for the benefit of the trust's beneficiaries, often used in business for tax and estate planning.