How does the goal of the firm influence the sales maximization and profit maximization decision.
How does the goal of the firm influence the sales maximization and profit maximization decision.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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How does the goal of the firm influence the sales maximization and profit maximization decision.
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Step 1 Introduction
The goal of the Firm: Every firm has a goal of wealth maximization which is accomplished from the profit and sales maximization is believed to be the firm's principal objective. The owner management of the company is considered to be trying to maximize the company's short-term earnings. Profits are the most important indicator of a company's success. Profit maximization isn't always the goal of businesses.
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