Question

The mission statements of visionary firms suggest that ________ is not their primary reason for existence.

1) Profit maximizing, while an important corporate objective
2) Profit maximizing is neither an important corporate objective nor their primary reason for existence
3) Profit maximizing is their primary reason for existence
4) Value maximizing is their primary reason of existence

Answer 1

The mission statements of visionary firms suggest that profit maximizing is neither an important corporate objective nor their primary reason for existence.

Correct answer is option 2.

Step-by-step explanation:

In the context of visionary firms, option 2 is correct. Their mission statements often emphasize goals beyond mere profit maximization. Visionary companies prioritize factors such as innovation, social responsibility, and creating long-term value over the sole pursuit of profit. The phrase "Profit maximizing is neither an important corporate objective nor their primary reason for existence" encapsulates this idea.

Profit Maximizing Not an Important Corporate Objective: Visionary firms recognize the significance of profit but view it as one among several corporate objectives. Their mission goes beyond a singular focus on maximizing profits to encompass broader goals that contribute to the company's overall vision and impact.

Primary Reason for Existence: The statement negates the notion that profit is the primary reason for the existence of visionary firms. Instead, it implies that these companies exist for a more profound purpose, often linked to their vision, values, and societal impact.