The primary buying objective for business firms is usually to
A)increase profits through increasing costs and increasing revenues.
B)increase profits through reducing costs and decreasing revenues.
C)increase profits through reducing costs or increasing revenues.
D)maintain profits through reducing costs and increasing revenues.
E)reduce profits through reducing costs and reducing revenues.

Question

Quizplus · Accepted Answer

The primary buying objective for business firms is to increase profits, which can be achieved by either reducing costs or increasing revenues. This means that firms may negotiate for better prices or terms with suppliers, or seek out more lucrative sales opportunities with customers. The goal is to optimize the balance between cost and revenue in order to maximize profits. Options A and B both assume that increasing costs is a viable way to achieve profit growth, which is generally not the case. Option D correctly identifies the need to balance cost and revenue, but does not explicitly state the goal of increasing profits. Option E is illogical, as reducing profits through reducing costs and revenues is not a sensible business objective.

The Primary Buying Objective for Business Firms Is Usually to