Generally,_____ is accepted as the clearest indication of a firm's ability to satisfy the principal desires of employees and stockholders.

Question

Quizplus · Accepted Answer

Profit over the long term is the best indication of a firm's ability to satisfy the principal desires of employees and stockholders. It reflects the ability of the firm to generate sustainable profits and create value for both employees and shareholders. Short-term profits may be a result of a one-time event and may not reflect the long-term viability of the firm. Return on assets is an important measure of profitability, but it does not necessarily reflect the firm's ability to satisfy the principal desires of employees and stockholders. The number of lawsuits brought against the firm is a negative indicator and does not reflect the positive performance of the firm.

Generally,_____ Is Accepted as the Clearest Indication of a Firm's