Sales maximization may be a goal of a firm if
a. firms are managed by irrational persons.
b. the firm has no way to measure profitability.
c. the firm is privately held, and there is no separation between ownership and control.
d. managerial bonuses are based on sales revenue instead of profitability.
d
You might also like to view...
If Estonia has an absolute advantage in the production of two goods compared to Norway, Estonia can not benefit from trade with Norway
Indicate whether the statement is true or false
During recessions, the unemployment rate ________ and output ________
A) rises; falls B) rises; rises C) falls; rises D) falls; falls
Opportunity cost is defined
a. only in terms of money spent b. as the value of all alternatives not chosen c. as the value of the best alternative not chosen d. as the difference between the benefits from a choice and the benefits from the next best alternative e. as the difference between the benefits from a choice and the costs of that choice
Which of the following is NOT a firm-specific advantage of an MNE?
A. Native understanding of local customs B. Patented technology C. Marketing capabilities D. Superior management technique