Question

Which of the following is NOT an economic objective of the firm?(a) Sales growth(b) Improvement in market share(c) Profits and return on investment(d) Conservation of natural resources

Answer 1

option D IS CORRECT OPTION

Answer 2

• Option (D) Conservation of Natural Resources is not an economic objective of the firm.
• The primary and the most important motive of every business is to earn profit. Without profit a business will go bankrupt and eventually close down.
• Other objectives mentioned here like Sales growth, Improvement in market share and Profit and return on investment are also very important.
• Sales is the basic business activity which brings in revenue.
• Improvement in market share will increase the share value and make the investors interested in the company’s share.

• Profit and return on investment is the basic motive for business investment to maintain their cash flow.