1.

"If a company makes product donations to the school, computers for

instance - then the image of a company goes up as graduate students use
the company's products?" Does such action square with a company's
objective of profit maximization? Discuss.
Well for me this action still works for profit maximaztion since the central goal of
the organization is to increase its profits and by donating some computers to the
graduate students this can be classified as a marketing and advertisement at the
same time since if they experienced how smooth and nice your products are so
in the end of the day if they want to buy one for their personal use as a company
more sales leads to more revenue and we can fix its prices and cost structure to
achieve the highest possible profit our company can earn.
2. Do you believe that profit maximization still represents the best overall
economic objective for today's corporation? Why?
For me yes I believe that it represents the best overall economic objectives since
its goal is for the business or company to earn maximum profit at low cost which
is considered the main goal of any business. But for me, this short-term objective
of the firm is necessary for the survival and growth of the enterprise since even
thou its main goal is to earn maximum profit it has these disadvantages.
3. What is/are some of the risks arise that affect the goal of a firm?
When it comes to business/firms we should be ready to face different problems
and challenges that our company may face but here is some risk we should look
out for, compliance risk, operational risk, and reputational risk. Security and fraud
risk. And lastly uncertainty-based or natural disasters and these are some risks
that can affect our firms
4. Why may corporate managers not specifically aim at profit maximization
for their companies?
I think the reason why corporate managers don’t specifically aim at profit
maximization for their companies is because of its disadvantages of it. An
example of it is ignoring the risk factor involved which may be detrimental to the
survival of the business in the long run. And also doesn’t consider the time value
of money since a certain unit of money today will not be equal to the same unit of
money a year later. And lastly, they are more favorable on the long-term side
since we know that profit maximization is a short-term one and may affect
different things in the firm.
Yes, such action deals with the company's objective of profit maximization.
In
the given situation the company donates computers to the graduate
students
with the objective that the image of the company will go up as
graduate
students use the company's computers. The idea behind this objective is
that
when the company's computers will be used and endorsed by the graduate
students it will help in marketing and advertisement of the product.
Aspiring
students and others who want to buy a computer will get an impression
that
this computer is better as it is used by the graduates who are
knowledgeable.
And, it is a general impression that a knowledgeable person would use a
good
product. Therefore, this act of the company will work as a
positive
advertisement of the product. This will give a positive boost to the image of
the product and as result sales will increase. Increase in sales means more
revenue and thus more profits.
As a company's ultimate objective is profit maximization, therefore it can
be
said that the company's action (donating the computer's to graduate
students)
is consistent with the company's ultimate objective of maximizing the
overall
profits or it does square with the company's objective of profit
maximization
s, such action deals with the company's objective of profit maximization. In
the given situation the company donates computers to the graduate
students
with the objective that the image of the company will go up as
graduate
students use the company's computers. The idea behind this objective is
that
when the company's computers will be used and endorsed by the graduate
students it will help in marketing and advertisement of the product.
Aspiring
students and others who want to buy a computer will get an impression
that
this computer is better as it is used by the graduates who are
knowledgeable.
And, it is a general impression that a knowledgeable person would use a
good
product. Therefore, this act of the company will work as a
positive
advertisement of the product. This will give a positive boost to the image of
the product and as result sales will increase. Increase in sales means more
revenue and thus more profits.
As a company's ultimate objective is profit maximization, therefore it can
be
said that the company's action (donating the computer's to graduate
students)
is consistent with the company's ultimate objective of maximizing the
overall
profits or it does square with the company's objective of profit maxim