To determine which option is NOT an objective of a firm, let's break down each option:

1. **Profit Maximization**: This is a common objective for firms, aiming to increase the difference between total revenue and total costs.
2. **Wealth Maximization**: This refers to maximizing the value of the firm for its shareholders, often considered a broader perspective than profit maximization.
3. **Revenue Maximization**: While firms often aim to increase revenue, focusing solely on revenue can lead to neglecting costs, thus not effectively maximizing profit or wealth.
4. **Market Share Maximization**: Firms often target increasing their market share to enhance competitive advantage, which can be an important objective, albeit different than the traditional focus on profitability.

### Conclusion
While all the options can be considered as objectives in different contexts, **c. Revenue maximization** is often viewed as a less balanced objective because it may not necessarily take into account the costs associated with generating that revenue. Hence, it is typically NOT a primary objective of a firm when compared to profit or wealth maximization.

Question

To determine which option is NOT an objective of a firm, let's break down each option:

1. **Profit Maximization**: This is a common objective for firms, aiming to increase the difference between total revenue and total costs.
2. **Wealth Maximization**: This refers to maximizing the value of the firm for its shareholders, often considered a broader perspective than profit maximization.
3. **Revenue Maximization**: While firms often aim to increase revenue, focusing solely on revenue can lead to neglecting costs, thus not effectively maximizing profit or wealth.
4. **Market Share Maximization**: Firms often target increasing their market share to enhance competitive advantage, which can be an important objective, albeit different than the traditional focus on profitability.

### Conclusion
While all the options can be considered as objectives in different contexts, **c. Revenue maximization** is often viewed as a less balanced objective because it may not necessarily take into account the costs associated with generating that revenue. Hence, it is typically NOT a primary objective of a firm when compared to profit or wealth maximization.

Knowee AI · Accepted Answer

To determine which option is NOT an objective of a firm, let's break down each option:

1. **Profit Maximization**: This is a common objective for firms, aiming to increase the difference between total revenue and total costs.
2. **Wealth Maximization**: This refers to maximizing the value of the firm for its shareholders, often considered a broader perspective than profit maximization.
3. **Revenue Maximization**: While firms often aim to increase revenue, focusing solely on revenue can lead to neglecting costs, thus not effectively maximizing profit or wealth.
4. **Market Share Maximization**: Firms often target increasing their market share to enhance competitive advantage, which can be an important objective, albeit different than the traditional focus on profitability.

### Conclusion
While all the options can be considered as objectives in different contexts, **c. Revenue maximization** is often viewed as a less balanced objective because it may not necessarily take into account the costs associated with generating that revenue. Hence, it is typically NOT a primary objective of a firm when compared to profit or wealth maximization.

Which of the following is NOT an objective of a firm?a.Profit maximizationb.Wealth maximizationc.Revenue maximizationd.Market share maximization

Question

Which of the following is NOT an objective of a firm?

Solution

Conclusion

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