5. Management works with the following objectives
(a) Objective of profit maximisation
(b) Objective of sales maximisation
(c) Objective of becoming market leader
(d) Multiple objective
Answers
Answer:
(d) multiple objective
Answer:
1. The objective of Profit maximization is to reduce risk and uncertainty factors in business decisions and operations. Thus, this objective of the firm enhances productivity and improves the efficiency of the firm. ... In a competitive market, only those firms survive which are able to make a profit.
2. Sales maximisation is a theoretical objective of a firm which involves selling as many units of a good or service as possible, without making a loss. This means sacrificing some short-term profit with a view to achieving a longer term gain.
3.Market leadership and competitive advantage. A key objective may be to become market leader i.e. the largest single player in the market. If the firm is the market leader, then they can determine the pace and direction of the market and act as the benchmark against which others view their products.
4.Multi-objective optimization is an area of multiple criteria decision making that is concerned with mathematical optimization problems involving more than one objective function to be optimized simultaneously.