A target return profit objective implies that a company chooses to
A)set targets whose performance can be measured quickly.
B)give up immediate profit in exchange for achieving a higher market share in hopes of penetrating competitive markets.
C)set a profit goal that is often determined by its board of directors.
D)reduce investment in any further market or product research.
E)set prices based on return on sales.

Question

Quizplus · Accepted Answer

Three different objectives relate to a firm's profit,which include: (1)managing for long-run profits,when a company gives up immediate profit in exchange for achieving a higher market share;(2)maximizing current profit,such as for a quarter or year,because the targets can be set and performance measured quickly;and (3)achieving a target return,which occurs when a firm sets a profit goal (such as 20 percent for pretax ROI),usually determined by its board of directors.

A Target Return Profit Objective Implies That a Company Chooses