In order to maximize profits the firm chooses organizational forms that allow:
A)shareholders a say in operations.
B)owners to run the firm.
C)individual incentives to match with firm objectives.
D)the firm to charge the highest prices.

Question

Quizplus · Accepted Answer

The choice of organizational forms that align individual incentives with firm objectives helps to increase productivity and efficiency, ultimately leading to higher profits. Options A and B may not necessarily maximize profits and may involve conflicts of interest between shareholders and owners, while option D may result in reduced demand and lower profits in the long run.

In Order to Maximize Profits the Firm Chooses Organizational Forms