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Profit Maximisation Is Not an Adequate Goal of the Firm

Question 13

Multiple Choice

Profit maximisation is not an adequate goal of the firm when making financial decisions because [blank].


A) it reflects shareholder wealth maximisation
B) it reflects the risk inherent in different projects that will generate the profits
C) it ignores the timing of a project's returns
D) it minimises the share price

Correct Answer:

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