Although firms may pursue a variety of goals,the assumption that primary goal of strategy is to maximize profits over the long term may be justified by:

Question

Quizplus · Accepted Answer

External pressures from competition and possible acquisition by firms that do maximize profits provide strong incentivization for firms to prioritize profits as their primary goal. While legal requirements and shareholder pressure may contribute to this prioritization, they are not as influential as the external pressures arising from competition and acquisition threats.

Although Firms May Pursue a Variety of Goals,the Assumption That