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The aims of firms( THE PRINCIPLE OF PROFIT MAX AS A GOAL)Most firms want to make a profit, however, this is not the primary aim of all firms. The aim of firms are as follows:
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The private firm as producer and employer The aims of firms( THE PRINCIPLE OF PROFIT MAX AS A GOAL) Most firms want to make a profit, however, this is not the primary aim of all firms. The aim of firms are as follows: 1.Profit maximization Selling goods and services earns revenue for a firm. Profit is what is left from revenue after all costs have been deducted. A firm that is unable to cover its costs with enough sales revenue will make a loss and could be forced to close down if losses continue. A firm may make a loss if it fails to make a product consumers want, at the price or quality they want, or provides a poor customer service. A firm may also make a loss if it is unable to produce products at the same or a cheaper cost than rival firms. It is therefore important for firms to be...
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