Because profit is defined by accounting rules and measured in financial statements,profit maximization is an unambiguous performance goal for a firm.

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While profit is indeed measured in financial statements, profit maximization as a performance goal is not unambiguous. This is because there are various factors that can affect a firm's profit, such as market conditions, competition, and ethical considerations. Additionally, a focus solely on profit maximization may lead a firm to make short-term decisions that could harm its long-term sustainability and value to stakeholders. Therefore, the performance goal for a firm should not be limited to profit maximization, but include other objectives such as social responsibility, environmental sustainability, and customer satisfaction.

Because Profit Is Defined by Accounting Rules and Measured in Financial