Question

Which of the following is true of profit maximization?

a.Profit maximization should be achieved through legal and ethical means.
b.Profit maximization is achieved by considering the financial measures focused on only efficiency.
c.Profit maximization results in maximum cost to and maximum production by a company.
d.Profit maximization is an objective of financial accounting but not managerial accounting.

Answer 1

Profit maximization should be achieved through legal and ethical means.

Step-by-step explanation:

In simple words, all the decisions whether investment or financing etc. are focused on maximizing the profits to optimum levels. Profit maximization is the traditional approach and the primary objective of financial management. It implies that every decision relating to business is evaluated in the light of profits