BUS 3360
University Of Dallas
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Finance Review BUS 3360
- Exam (elaborations) • 6 pages • 2022
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- $10.49
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CHAPTER 1 
1.1. Problems with using profit maximization as the goal of the firm? How does the goal of 
maximization of shareholder wealth deal with those problems? 
(a) Microeconomists usually assign profit maximization as a theoretical goal, which ignores real life 
problems such as uncertainty and timing. Microeconomic theory doesn’t address risk in a way that 
measures the risk of one project over another, but risk is immediately tied to returns; thus, this 
theoretical approach can lead to...
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