3.2 - Business objectives
0.0(0)
Studied by 1 person
Learn
Practice Test
Spaced Repetition
Match
FlashcardsCard Sorting
1/4
Earn XP
Description and Tags
Study Analytics
Name | Mastery | Learn | Test | Matching | Spaced |
|---|
No study sessions yet.
5 Terms
1
New cards
Profit maximisation
MC=MR
WHY -
Reinvestment
Dividends for shareholders
Reward for enterprise
But
Knowledge of MC=MR hard
Expense of stakeholders
Greater scrutiny
Other objectives more appropriate
2
New cards
Revenue Maximisation
MR=0
WHY -
EOS
Limit pricing
P-A-P
3
New cards
Sales Maximisation
AC=AR
Why
EOS
Predatory pricing
P-A-P
E.g Spotify, Netflix - to max market share
4
New cards
Profit Satisficing
makes enough to keep shareholders happy
5
New cards