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.
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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