The ultimate objective of every firm, such as IBM, Hewlett-Packard, JC Penney, and Cengage Learning, must be to
A)sell either to other firms or to consumers.
B)satisfy the needs of its customers.
C)pay out money to cover the various expenses of doing business.
D)know that people generally buy a product and store it.
E)make it impossible to satisfy customers.

Question

Quizplus · Accepted Answer

The ultimate objective of every firm is to satisfy the needs of its customers. Without satisfied customers, a firm cannot expect to survive in the long-term. Sales, covering expenses, and inventory management are important aspects of running a business, but they are all means to achieve the ultimate goal of customer satisfaction. Making it impossible to satisfy customers is clearly not a viable objective.

The Ultimate Objective of Every Firm, Such as IBM, Hewlett-Packard