Question

Question 11 

There are more privately-owned businesses in the U.S. than there are publicly traded forms, 

True 

False 

Question 12 

The primary goal of a firm/company/business is the following: 

Maximize Revenue 

Minimize Operating Expenses 

Maximize Net Income 

Maximize the value of the Firm for its Owners

Answer 1

Question	Answer	Reason
11	True	The privately owned business comprise a major portion of US economy. It comprises of all startups, private equities etc. A recent study has also shown that companies like to stay private because it gives them time and efficiency to run the business, whereas for publicly traded companies, the SEC guidelines, shareholder's and media attention to show results every quarter devoids them from long term growth visions.
12	maximize the value of the firm for its owners.	It is always required for every business in what so ever form they are doing business in, that they think from a long term perspective, deliver quality products and services to its customers, remain accountable to the society and its employees. All this helps the business to grow and ultimately increases the value of the owner and the business. On the other hand, maximizing revenue, profits or minimizing costs are only short term strategies. These cannot be and should not be the ultimate objective of any business. This can even be achieved via window dressing, manipulation of accounts, frauds etc.