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Which option shows a wrong understanding of the profit objective?

Answer and explanation

Correct answer: Profit may be earned by any means

The governing concept is that profit is an economic objective and an essential means of survival, growth, and future investment, but it is not a licence to act unlawfully or unethically. A business must earn a reasonable return while obeying laws, protecting consumers, treating employees fairly, and respecting society. Hence option A expresses the wrong understanding because profit cannot be pursued through any means; dishonest, unsafe, or illegal methods are unacceptable. Options B and C correctly explain why profit is needed for continuity and reinvestment. Option D is also correct because the objective is reasonable profit, not unlimited profit at any cost.

Related tags

Profit ObjectiveEthicsSocial ResponsibilityBusiness ObjectivesObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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