[amp_mcq option1=”Maximisation of sale” option2=”Maximisation of owner’s wealth” option3=”Maximisation of profits” option4=”None of these” correct=”option4″]<\/p>\n
The correct answer is: D. None of these<\/strong><\/p>\n The appropriate objective of an enterprise is to create value for its stakeholders. This means that the enterprise should strive to meet the needs of its customers, employees, shareholders, and other stakeholders in a way that is sustainable over the long term.<\/p>\n Maximizing sales is not necessarily the best way to create value for stakeholders. In fact, it can sometimes lead to lower profits and a decrease in shareholder value. For example, an enterprise that focuses on increasing sales at all costs may end up selling products that are not of high quality or that do not meet the needs of its customers. This can damage the enterprise’s reputation and lead to lost sales in the long run.<\/p>\n Maximizing owner’s wealth is also not necessarily the best way to create value for stakeholders. In fact, it can sometimes lead to decisions that are not in the best interests of the enterprise as a whole. For example, an enterprise that focuses on maximizing owner’s wealth may make decisions that reduce investment in research and development, which can hurt the enterprise’s long-term prospects.<\/p>\n The appropriate objective of an enterprise is to create value for its stakeholders. This means that the enterprise should strive to meet the needs of its customers, employees, shareholders, and other stakeholders in a way that is sustainable over the long term.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Maximisation of sale” option2=”Maximisation of owner’s wealth” option3=”Maximisation of profits” option4=”None of these” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-51681","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n