A large corporation's profit objective may not be profit or wealth maximization,because
A)stockholders have little power in corporate decision making.
B)management is more interested in maximizing its own income.
C)managers are overly concerned with their own survival and may not take all prudent risks.
D)All of the above

Question

Quizplus · Accepted Answer

All of the above options are potential explanations for why a large corporation's profit objective may not be profit or wealth maximization. Stockholders may not have much influence on decision making, management may prioritize maximizing their own income over maximizing overall profits, and managers may be risk-averse in order to protect their own job security.

A Large Corporation's Profit Objective May Not Be Profit or Wealth