A Maximizing Current Profit Objective Implies That a Company Chooses

question 80

Multiple Choice

A maximizing current profit objective implies that a company chooses to

• A)set targets whose performance can be measured quickly.
• B)give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
• C)set a profit goal that is often determined by its board of directors.
• D)reduce investment in any further market or product research.
• E)set prices based on return on sales.

---

Definitions:

Per Year

A time frame reference indicating an annual basis.

Savings Account

A savings account in a bank or financial institution that guarantees the safety of the deposited capital while offering a low interest rate.

Interest Rate

The cost incurred by a borrower from a lender for utilizing assets, shown as a percentage of the principal sum.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in investment and financial analysis.