BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The appropriate objective of an enterprise is;
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Maximisation of sale
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Maximisation of owners wealth
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Maximisation of profits
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None of these.
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Explanation:
Detailed explanation-1: -The appropriate objective of an enterprise is. Note : Ans : Maximisation of business wealth (Wealth maximisation is the concept of increasing the value of the business in order to increase the value of the shares held by shareholders, therefore it is an objective of enterprise.)
Detailed explanation-2: -Profit Maximisation: In the conventional theory of the firm, the principal objective of a business firm is profit maximisation.
Detailed explanation-3: -Earning profits on the capital employed is the main objective of every business enterprise. Every business aims to earn a reasonable profit in order to survive and grow in this competing world.
There is 1 question to complete.