A first step in determining managerial objectives is to:

Question

Quizplus · Accepted Answer

Before establishing managerial objectives, it is important to identify the organization's purpose, which is to serve the needs of the customer. All organizational goals and objectives should ultimately align with this purpose to ensure long-term success. Developing compensation policies and selecting an appropriate capital structure can be important factors in achieving objectives, but they come later in the process after the primary purpose has been established. Eliminating agency problems may also be important but is not a necessary first step in determining managerial objectives.

A First Step in Determining Managerial Objectives Is To