A firm's fundamental goal is
A) different for each firm.
B) to make a quality product.
C) to maximize profit.
D) to gain market share.
E) to decrease its employment of workers in order to cut its costs.

Question

Quizplus · Accepted Answer

The fundamental goal of a firm is to maximize profit. While all firms may have different strategies and approaches, the ultimate goal is to generate revenue in excess of costs and maximize profits for its shareholders. Making a quality product and gaining market share are important factors in achieving this goal, but they are not the ultimate goal in themselves. Decreasing employment of workers may be a cost-cutting measure, but it does not necessarily lead to maximizing profit.

A Firm's Fundamental Goal Is