Which of the following is one of the major benefits derived from target-return objectives?
A) They eliminate competition.
B) They generate excess profit.
C) They encourage increased investments by stockholders.
D) The serve as a means of evaluating performance.

Question

Quizplus · Accepted Answer

Target-return objectives serve as a means of evaluating performance by providing a clear target for financial returns that can be measured and compared against actual performance. This allows managers to assess their success in achieving the desired returns and make necessary adjustments to their strategies and operations. While they may lead to increased investments by stockholders or generate excess profit in some cases, these are not necessarily major benefits derived from target-return objectives. They also do not eliminate competition, as competitors may have their own target-return objectives and strive to achieve them.

Which of the Following Is One of the Major Benefits