Question

The mission statements of visionary firms

A) suggest that profit maximizing, while an important corporate objective, is not their primary reason for existence.
B) suggest that profit maximizing is neither an important corporate objective nor their primary reason for existence.
C) suggest that profit maximizing is their primary reason for existence.
D) suggest that value maximizing is their primary reason of existence.

Answer 1

Visionary firms prioritize innovation, customer satisfaction, and societal impact alongside profit maximization in their mission statements, reflecting a broader purpose beyond just profits.

Step-by-step explanation:

The mission statements of visionary firms typically suggest that profit maximizing, while an important corporate objective, is not their primary reason for existence. Firms in a market-oriented economy have freedom of action, which includes managing their corporate health and the obligation to maximize profit for shareholders. However, successful visionary firms are often characterized by broader goals such as innovation, customer satisfaction, societal impact, and sustainable practices that go beyond mere profit maximization.