Question

Profit maximization is not an adequate goal of the firm when making financial decisions because

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Part 1
A.it ignores the timing of a​ project's returns.
B.it ignores the risk inherent in different projects that will generate the profits.
C.it does not necessarily reflect shareholder wealth maximization.
D.all of the above are correct.

Answer 1

Profit maximization is not an adequate goal of the firm when making financial decisions because it ignores the timing of a project's returns, the risk inherent in different projects, and shareholder wealth maximization.

Step-by-step explanation:

Profit maximization is not an adequate goal of the firm when making financial decisions because it ignores important factors such as the timing of a project's returns, the risk inherent in different projects, and the goal of shareholder wealth maximization.

These factors must be considered in order to make informed decisions that benefit the firm and its stakeholders.