8. A firm's profit might not be related solely to how well it manages its resources because of external factors such as market conditions. For example, if there is a sudden economic downturn or a new competitor enters the market, the firm's profits may decrease despite efficient resource management. (5 marks)

9. 'The divorce of ownership from control' refers to the situation in a corporation where the owners (shareholders) are not the same people who control (managers) the company. This can lead to agency problems where the managers may not always act in the best interest of the shareholders. (5 marks)

10. New firms are likely to prioritize survival as an objective because they face a lot of uncertainties and challenges in the initial stages. These include establishing a customer base, dealing with competition, and managing cash flow. By prioritizing survival, they can ensure that they stay in business long enough to overcome these challenges and start making a profit. (6 marks)

11. Profit is likely to be more important than a firm’s other objectives because it is a measure of the firm's financial success. Profit is necessary for the firm to continue its operations, invest in growth, and provide returns to its shareholders. While other objectives like social responsibility and customer satisfaction are important, they are often pursued with the ultimate goal of increasing profits. (10 marks)

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8. A firm's profit might not be related solely to how well it manages its resources because of external factors such as market conditions. For example, if there is a sudden economic downturn or a new competitor enters the market, the firm's profits may decrease despite efficient resource management. (5 marks)

9. 'The divorce of ownership from control' refers to the situation in a corporation where the owners (shareholders) are not the same people who control (managers) the company. This can lead to agency problems where the managers may not always act in the best interest of the shareholders. (5 marks)

10. New firms are likely to prioritize survival as an objective because they face a lot of uncertainties and challenges in the initial stages. These include establishing a customer base, dealing with competition, and managing cash flow. By prioritizing survival, they can ensure that they stay in business long enough to overcome these challenges and start making a profit. (6 marks)

11. Profit is likely to be more important than a firm’s other objectives because it is a measure of the firm's financial success. Profit is necessary for the firm to continue its operations, invest in growth, and provide returns to its shareholders. While other objectives like social responsibility and customer satisfaction are important, they are often pursued with the ultimate goal of increasing profits. (10 marks)

Knowee AI · Accepted Answer

8. A firm's profit might not be related solely to how well it manages its resources because of external factors such as market conditions. For example, if there is a sudden economic downturn or a new competitor enters the market, the firm's profits may decrease despite efficient resource management. (5 marks)

9. 'The divorce of ownership from control' refers to the situation in a corporation where the owners (shareholders) are not the same people who control (managers) the company. This can lead to agency problems where the managers may not always act in the best interest of the shareholders. (5 marks)

10. New firms are likely to prioritize survival as an objective because they face a lot of uncertainties and challenges in the initial stages. These include establishing a customer base, dealing with competition, and managing cash flow. By prioritizing survival, they can ensure that they stay in business long enough to overcome these challenges and start making a profit. (6 marks)

11. Profit is likely to be more important than a firm’s other objectives because it is a measure of the firm's financial success. Profit is necessary for the firm to continue its operations, invest in growth, and provide returns to its shareholders. While other objectives like social responsibility and customer satisfaction are important, they are often pursued with the ultimate goal of increasing profits. (10 marks)

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