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Question : Assertion: The primary objective of management is to maximize profits.

Reason: Financial success is the ultimate goal of any organization.

Option 1: Both assertion and reason are correct, and the reason explains the assertion.
 

Option 2: Both assertion and reason are incorrect.
 

Option 3: The assertion is correct, but the reason is incorrect.
 

Option 4: The assertion is incorrect, but the reason is correct.

 

Option 5: Both assertion and reason are correct, and the reason is not the correct explanation of the assertion.


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Both assertion and reason are incorrect.
 


Solution : The correct answer is (b) Both assertion and reason are incorrect.

The assertion is not entirely correct. While profitability is a significant objective for many organizations, it is not the sole primary objective of management. Organizations have a broader set of goals and objectives that may include factors such as sustainability, social responsibility, customer satisfaction, and employee well-being, in addition to financial success.

The reason is incorrect because it oversimplifies the objectives of organizations. While financial success is crucial, organizations have diverse goals that go beyond pure financial profit.

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