Question

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The goal of the firm is to maximize income and minimize expenses to make the largest...

The goal of the firm is to maximize income and minimize expenses to make the largest profit.

               a. True   b. False

Solutions

Expert Solution

The given statement is FALSE
The primary goal of every firm is to maximize the wealth of the shareholders

i.e. maximizing the stock price of common shares and not to increase profits

Hence, the answer is b.FALSE

jeff jeffy answered 2 years ago
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