Author Question: Profit maximization is NOT an adequate goal of the firm when making financial decisions because: ... (Read 22 times)

Deast7027 · **on:** Jul 11, 2018

Profit maximization is NOT an adequate goal of the firm when making financial decisions because:

A) it does not necessarily reflect shareholder wealth maximization.
B) it ignores the risk inherent in different projects that will generate the profits.
C) it can over-emphasize a project's short-term returns.
D) All of the above.

Question 2

Which of the following statements is true regarding unsatisfied judgment funds?

A) An accident victim can choose to collect from the negligent driver or from the fund.
B) The negligent driver is relieved of legal responsibility when the fund makes a payment to the accident victim.
C) The maximum amount an individual can collect from the fund is usually much more than the minimum liability limits required by the state.
D) An accident victim must have exhausted other means of recovery before collecting from the fund.