Question

For profit organizations pursue several different types of goals such as profit, sales, market share, quality, customer satisfaction, employee welfare, and social responsibility. Which of these statements is most accurate?a. If profits are acceptable, a company may elect to maintain or increase its sales even though profits may not be maximized.b. Selecting a market share goal is only meaningful if you first make profit a goal.c. Customer satisfaction goals are known to increase costs and reduce profits.d. Only nonprofit organizations have the luxury of selecting social responsibility and employee welfare as goals.e. A business firm should select only one business goal so it can maintain focus.

Answer 1

Answer:

The answer is: B) Selecting a market share goal is only meaningful if you first make profit a goal.

Explanation:

The main objective and the reason for a profit organization to exist, is to obtain the maximum possible profit it can. In order to do this they make and execute a business which might consider different aspects of the organization, the community and the environment. But the maximum profit is the ultimate goal.

When a business selects a market share goal they will do it considering how many products they need to sell to maximize their possible profits. Most businesses try to sell as many products as they can and increase their market share, i.e. the Coca Cola Company sells the larger its profit. A few businesses can even restrain themselves from selling too many products and gaining market share, so that they can be considered exclusive or luxurious, i.e. Pagani Automobiles only manufactures around 30 cars a year but makes millions from every car sold.  

For profit organizations are extremely selfish. Everything they do has a reason behind it, and that is to maximize its profit. Even programs that improve employee welfare or help the community, are done to improve employee productivity or increase market share so that profits can grow.