The main objectives of firms are: Profit maximisation.
Increased market share/market dominance.
What is a firm and its objectives?
In the conventional theory of the firm, the principal objective of a business firm is profit maximisation. Under the assumptions of given tastes and technology, price and output of a given product under perfect competition are determined with the sole objective of maximising profits.
Is profit Maximisation The main objective of a firm?
The most basic model of a firm assumes firms wish to maximise their profit. They will do this by increasing revenue (price * quantity sold) and reducing costs. Higher profits enable a firm to pay higher wages, more dividends to shareholders and survive an economic downturn.
What are the four main financial objectives of a firm?
Financial Objectives The four main financial objectives of an enterprise are profitability, liquidity, efficiency, and stability.
What does a firm wish to achieve?
ADVERTISEMENTS: Major objectives that a firm wants to achieve apart from earning profit are as follows: An objective is something that the firm wants to achieve over a specific period of time. It is presumed that business has the only objective of earning profit.