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Assertion states that maximum profit is always the best objective. Reason states that interests of other stakeholders are unimportant in management. Choose the correct option.

Answer and explanation

Correct answer: Both assertion and reason are false

Direct answer: Option D, both assertion and reason are false. The assertion says maximum profit is always the best objective. That is false because management must balance organisational, social and personal objectives; ignoring customers, employees, suppliers or society can damage long-term success. The reason says other stakeholders are unimportant. That is also false, because stakeholders affect and are affected by the organisation. Option A is wrong because both statements are not true. Option B is wrong because the assertion is not true. Option C is wrong because the reason is not true either. The correct analysis is therefore false assertion plus false reason, which is option D. Profit is important for survival, but “always the best” and “other interests are unimportant” are extreme statements. Memory cue: good management balances profit with people and society.

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Assertion-ReasonProfitStakeholders

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