Three different objectives relate to a firm's profit, which is often measured in terms of return on investment.One objective, known as _________, occurs when a firm sets a profit goal, usually determined by its board of directors.
A)managing for long-run profits
B)maximizing current profit
C)target return
D)minimizing risks
E)break-even objective

Question

Quizplus · Accepted Answer

The objective described in the question is the target return objective, which involves setting a profit goal determined by the board of directors. Option A, managing for long-run profits, is a broader objective that involves considering both short-term and long-term profitability. Option B, maximizing current profit, focuses solely on achieving the highest profit possible in the current period. Option D, minimizing risks, does not necessarily relate directly to profit and is more focused on reducing the potential negative impact of uncertain events. Option E, break-even objective, involves achieving a level of sales that covers all costs but does not necessarily relate to a specific profit target.

Three Different Objectives Relate to a Firm's Profit, Which Is