Q5
A valid definition of a business purpose is to ______.
A.
Create a customer
AnswerB.
Maximize profits
C.
Serve the society
D.
Increase the wealth of the firm
Answer: Option A
Solution
Answer: Option A
Solution:
A valid definition of a business purpose is to Create a customer. The customer is a foundation of a business and keeps it in existence. The customer alone gives employment. And it is to supply the customer that society entrusts wealth-producing resources to the business enterprise.