Economics 9708 · AS & A Level · 7.8

7.8 — practice question

Under what conditions are a firm’s aims most likely to be unlike profit maximisation?

  • Awhen a firm finances new investment largely by retained profits
  • Bwhere firms are companies with very active shareholders
  • Cwhere investment banks make takeovers easy to implement
  • Dwhen a firm has many shareholders and is managed by employees

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