Questions and Answers
What is one potential problem with adopting profit maximisation as an objective?
Short-termism risk
How can managerial performance targets and rewards affect the adoption of profit maximisation as an objective?
Encourage manipulation of results
What distinction needs to be made in terms of outcomes when considering profit maximisation?
Maximising vs. satisficing
Which measure can permit manipulation of results when profit maximisation is the objective?
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Why is it important to remember the difference between profit and wealth generation according to the text?
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