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    Foundations of Financial Management Study Set 1
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    Exam 1: The Goals and Activities of Financial Management
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    Selecting Profit Maximization as the Primary Goal of the Firm
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Selecting Profit Maximization as the Primary Goal of the Firm

Question 61

Question 61

Essay

Selecting profit maximization as the primary goal of the firm may not increase its value,because a profit-only focus has several drawbacks.List and describe these drawbacks.

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1. Risk may increase as profit changes. ...

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