Final answer:
The statement is false because profitability alone does not guarantee long-term survivability. Firms must also consider steady financial capital, innovation, market adaptation, and risk management to ensure they can survive economic downturns and competitive pressures.
Step-by-step explanation:
The statement that a company does not need to consider survivability as long as it is profitable is False. Profitability is a crucial measurement that determines whether a business can sustain its operations in the short term. However, long-term survivability requires additional considerations beyond immediate profits, such as the ability to find steady and reliable sources of financial capital, adapt to market changes, innovate, and manage risks. For example, firms may experience economic downturns or encounter competitive pressures that erode profits, and without adequate reserves or investment in innovation, they may not endure. Additionally, firms in a perfectly competitive industry may see profits vanish in the long run due to market forces driving prices down to the level of average costs, while losses tend to vanish as firms exit the market or improve efficiency to survive.