Paper 2 · November 2024 · Business Planning
Profit maximisation as a business objective means the enterprise aims to
Aemploy as many workers as it can
Bsell the largest possible quantity
Cmake the largest possible surplus
Dcharge the lowest price in the market
Explanation
Profit is revenue less total cost, so maximising it is not the same as maximising sales: selling more at a price below cost makes the position worse. The largest gap between revenue and cost is what is being sought.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Nov 2024, Q1