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Profitability of a firm Why do we not seek to maximize profit when discussing the role of a firm? Think about profit as an income
Profitability of a firm
- Why do we not seek to maximize profit when discussing the role of a firm? Think about profit as an income statement item that can be manipulated.
- Since higher profits are related to higher stock prices, what can a firm do to increase profits? Firms do want to maximize profits but use profit as a metric of performance
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