the objectives of the firm

Question 1

Profit maximisation

Answer 1

When a firm seeks to make the Largest positive difference between total revenue and total costs

Question 2

Revenue maximisation

Answer 2

maximised at an output level where marginal revenue equals 0

Question 3

Sales maximisation

Answer 3

Focuses on generating the highest possible level of sales within a given period

Question 4

Social enterprise

Answer 4

A business with specific social objectives as its primary purpose

Question 5

Stakeholders

Answer 5

Economic agents concerned on the growth of the firm not necessarily monetary reasons

Question 6

Shareholders

Answer 6

Economic agents concerned on the growth of the firm for monetary reasons

Question 7

Dividends

Answer 7

A portion of a company’s earnings that is distributed to its shareholders

Question 8

Divorce of ownership from control

Answer 8

The separation that exists between owners of the farm and the directors in large public limited companies