Question

If a firm establishes maximizing profits at the most important goal of the firm, which of the following would not be given proper consideration?A. Sales revenuesB. ExpensesC. RiskD. Cost of goods sold

Answer 1

Answer:

It is Risk (C)

Explanation:

Sales Revenue : A company with profit maximization objective will adopt every necessary strategy and marketing techniques to increase it sales revenue.

Expenses : In order to maximize profit, all discretionary expenses and costs must be kept as low as possible .

Risk : A profit-conscious company will not be mindful of risk regardless of their impact and will be ready to take higher risk. The higher the risk, the higher the return and vice-versa.

Cost of goods Sold : these represents direct costs incurred to generate revenue. Hence, in order to maximize profit, this must be kept low as well.