3. Do you think that the behavior of real world managers is always consistent with profitmaximization goal?

According to standard theory of the firm, profit maximization is taken into account to be the…

Answered: maximization goal?

Business

Accounting

maximization goal?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 8EA: Why do managers want a high ROI, and how would they strive to increase their ROI?

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maximization goal?

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Why do managers want a high ROI, and how would they strive to increase their ROI?
Why is profitability analysis necessary, with a particular emphasis on return on investment? When considering your answer, consider the ROI breakdown.
Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same?
Why is it critical to examine profitability, with a particular emphasis on return on investment? Consider the ROI breakdown while considering your answer.
The objective function of an investor in a CAPM world is to what (mathematically) [what are your trying to maximize]? What is the major assumption about the distribution of returns that we have to make to get to this objective function?
Why do most academics and financial executives regard the NPV as being the single best criterion and better than the IRR? Why do companies still calculate IRRs?
what are the assumptions about market efficiency ?
Explain what is the “behavioral view” of market efficiency? Cite some sources
What is the return on investment (ROI)?
Why is it important to analyze profitability, specifically focusing on return on investment? Invoke the breakdown of ROI in thinking about your response.
What are determinants of business risk? Check all that apply: Demand variability Financial leverage Competition and the ability to raise prices Input cost variability Operating leverage
What is the chief disadvantage of ROI as an investmentcenter performance measure? How does the residualincome measure eliminate this disadvantage?