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
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Suppose a government tried to mandate a real wage above the equilibrium real wage. Assuming that factor markets are otherwise free and competitive, explain why the higher real wage would fail to increase the share of labor income in national income
What will be an ideal response?
Which of the following strategies are adopted by a business tycoon when the first new management of the purchased company fails?
a. He tries a second management team. b. He tries to train and motivate the existing management team. c. He sells off part of the company in the market. d. He tries to reduce the cost of production by lowering output.