why is profit maximization supposedly not the most important goal of a company

Q: How the corporate governance is useful for a company? O a. It maximizes the mismanagement of the…

A: ANswer -    Option C is Correct Option - C. It Maximizes the Share Prices of the Company .

Q: what determines the market value of a company?

A: Market esteem (otherwise called OMV, or "open market valuation") is the value a resource would get…

Q: Explain an example of profit oriented companies.

A:

Q: 3. How does operating leverage impact the operating risk and profit levels of a company?

A: Operating leverage measures the percentage increase in operating income which is a result of change…

Q: The objectives of financial management are Select one: O a. None of the options O b. Profit…

A: Financial or money management is done to maximize wealth in long term and profit in short term…

Q: Explain how a business can earn a positive gross profit on its sales and still have a net loss.

A: Gross profit: It can be defined as the difference between the cost of goods sold and the net sales…

Q: Profit maximisation will lead to; a. Inequalities among the shareholders b. Corrupt practices…

A: TWo types of maximization are profit maximization and wealth maximization

Q: Can a company be profitable but not liquid? Explain.

A: Liquidity: It can be defined as the ease or quickness with which the short term assets of a company…

Q: Do you think the Friedman's statement that the " sole purpose of business is to make profits" is…

A: Answer: According to me "Sole Purpose of Business is to make profits" is not valid. A Business uses…

Q: Which form of business organization is characterized by having the shortest start-up time and lowest…

A: The Answer

Q: What are the drivers to the cost of revenue and the trends? b. Are there any trends in sales and…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: The agency problem is A. a result of the separation between management and owners of the firm. not…

A: 3. Agency problem refers to the conflict between management and shareholders. As per this theory,…

Q: Why is it that the goal of financial management is maximization of shareholders’ wealth rather than…

A: Financial management is defined as the planning, organizing, directing, and also the controlling of…

Q: is it possible for a company to expand itself out of existence, and how can this be avoided as a…

A: Introduction : When a company goes out of existence and shuts down its operations, it is stated that…

Q: managers speak as if the corporation has other goals. For example, they may say that their job is to…

A: Shareholder wealth maximization is the goal to maximize the market value of the firm and thus…

Q: Accounting Just because the gross profit margin is positive does not mean that a company will be…

A: Ratio analysis is a tool that establishes a relationship between the different items. It is used to…

Q: equity does not represent the market value of the company

A: There are various methods of arriving at a fair valuation of a company. Each of the methods give us…

Q: Which of the following objectives of the company creates immoral practices such as: corrupt…

A: In Welfare maximisation, company works for the wellbeing of society, people, environment etc. If an…

Q: How can a company expand itself out of existence, and how can this be avoided as a financial…

A: Introduction: Finance managers are accounting professionals who are concerned with the financial…

Q: profit margin,

A: In simple words, profit margin refers to the amount of profit that a company makes on its sales. If…

Q: Why do companies don't distribute all their profit

A: Company means a form of business where the share holder invest money in business in form of shares…

Q: How does the goal of the firm influence the sales maximization and profit maximization decision.

A: The goal of the Firm: Every firm has a goal of wealth maximization which is accomplished from the…

Q: without and effective system of cost accounts it is doubtful whether can survive in the intensely…

A: Cost accounting is the accounting of cost which collects all data from different sources and after…

Q: What do you meant by not for profit objective of the firm?

A: The sole purpose of any business organization is to earn profit. However, there are some…

Q: Explain how a company can be “profit rich, yet cash poor.”

A: Corporation: A corporation is a form of business entity that is incorporated through the state…

Q: Can you identify a possible explanation for the company’s declining profits? If so, what is it?

A: Company's declining profits can be possible due to overhead expenses.  Overhead costs are the…

Q: Why do you think companies use revenue recognition as a primary means for inflating profits?

A: Revenue Recognition: Revenue recognition is the recording of revenues in the books of the company…

Q: If a firm's busines activities do not results in profit maximisation, whilst alternative exist,then…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Why do you believe businesses rely heavily on revenue recognition to inflate profits

A: Here is the Answer

Q: How important is profit? How can a company survive when it isn't making a profit? How can a company…

A: profit is the most important thing for business order to exist for a longer period of time and have…

Q: 1. What is the fundamental goal of a firm? O Profit maximization Maximizing shareholder wealth…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Explain how the sales mix can affect the profitability of a company.

A: The sales mix is a calculation that determines the proportion of each producta business sells…

Q: What does the term hedging mean? Why do companies elect to follow this strategy?

A:

Q: What should be the most important goal of a company? Why?

A: A company is an entity that has a legal identity in the eyes of law. It represents an association of…

Q: Why is the profit maximization supposed not the most important goal of the company?

A: Solution Profit maximization is a process business firms undergo to ensure the best output and price…

Q: Can there be a difference between profit maximization and shareholder wealth maximization? If so,…

A: The companies have usually two goals such as profit maximization and wealth maximization. Profit…

Q: B) The C.E.O. explains that the company is facing severe competition in the market place and has…

A: CVP Analysis: When it comes to cost-volume-profit (CVP) analysis, it is a method of determining how…

Q: Profit maximization pupose cannot be an ideal basis for making business decision because of…

A: Profit maximization cannot be an ideal basis for making business decision because It focuses only on…

Q: Why would a company’s manager be concerned about the quantity of its purchases returns if its…

A: Purchase returns means return of merchandise to the suppliers or vendors due to low quality or any…

Q: Compare and contrast the net income margins of both Company A and B. Do you think the company with…

A: Net income margin = net income/sales

Q: What are the main hindrances in valuation estimates in business valuati

A: Knowing how much an asset is worth and what factors influence its value is essential for making…