duty of a firm to maximize profits for its owners or stockholders is referred to as _________.

Question

Quizplus · Accepted Answer

The duty of a firm to maximize profits for its owners or stockholders is known as profit responsibility. This means that the firm's primary objective is to make a profit for its shareholders, and it is responsible for using its resources to achieve this goal. However, this does not mean that a firm can ignore social and environmental responsibilities, stakeholder interests, or ethical considerations.

Duty of a Firm to Maximize Profits for Its Owners