Setting a goal of profit maximization has all of the following drawbacks except:

Question

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A is the only option that is not a drawback of setting a goal of profit maximization. It is true that in general, investors prefer more profit, but that does not negate the drawbacks of focusing solely on profit maximization. The other three options all point to potential problems with focusing solely on profit maximization. B warns that risk can increase with changes in profit. C suggests that profit may not always reflect the timing of benefits. And D notes that accurately measuring profit can be difficult.

Setting a Goal of Profit Maximization Has All of the Following