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#cfa #cfa-level-1 #economics #lol #microeconomics #reading-15-demand-and-supply-analysis-the-firm #section-2-objectives-of-the-firm #study-session-4
Many analysts view profitability as the single most important measure of business performance.
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2. OBJECTIVES OF THE FIRM
f shareholders’ equity). This theory states that firms try, or should try, to increase the wealth of their owners (shareholders) and that market prices balance returns against risk. However, complex corporate objectives may exist in practice. <span>Many analysts view profitability as the single most important measure of business performance. Without profit, the business eventually fails; with profit, the business can survive, compete, and prosper. The question is: What is profit? Economists, accountants, investors, financia


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