If the principal objective of a firm is to enhance wealth, the most important budget target to meet is:

Question

Quizplus · Accepted Answer

The most important budget target for a firm whose principal objective is to enhance wealth is profit. Profit is ultimately what contributes to the growth and accumulation of wealth for a firm and its owners, making it the most critical budget target to meet. While bank balance, sales, and production are important considerations for a business, they do not necessarily directly contribute to enhancing wealth in the same way that profitability does.

If the Principal Objective of a Firm Is to Enhance