The limitations of the profit maximization goal include which of the following?
A) It lacks a time dimension (i.e., it is static).
B) It fails to consider risk with alternative decisions.
C) The definition of profit is ambiguous.
D) All the above are limitations.

Question

Quizplus · Accepted Answer

All of the above are limitations of the profit maximization goal. The goal lacks a time dimension, meaning it does not consider the long-term effects of decisions. It also fails to consider risk, which can lead to poor decision-making. The definition of profit can also be ambiguous, as different companies may calculate it differently.

The Limitations of the Profit Maximization Goal Include Which of the Following