Which of the following are important when considering what objectives a firm sets for themselves?
A. To engage in specific activities that will perform a socially and economically useful function
B. To develop an organization to carry on the business and implement its strategies
C. To earn the highest possible profits
D. All of the above are true.
E. Only (A) and (B) are true.
Answer: (D) When setting objectives, a firm seeks to engage in specific activities that will perform a socially and economically useful function. The firm also seeks to implement effective strategies and to earn a profit.