Which goals would not serve as good criteria for evaluation of - ProProfs Discuss
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Which goals would not serve as good criteria for evaluation of financial performance?

Asked by Hdtchr, Last updated: Apr 10, 2024

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John Smith

John Smith

John Smith
John Smith

Answered Feb 19, 2017

Minimizing Corporate Tax
Slashing costs
Beating the Competition
Maximizing Profits
Maximizing market share.

None take into account investors exposure to financial risk or size of investment. Many businesses have been ruined by indiscriminate slashing of costs. Maximizing market share at any cost, may prove unprofitable. There is a fine line between legal tax minimization and fraudulent tax avoidance and unhealthy focus of tax might be to the detriment of higher profits. Likewise, a determined attitude to beating the competition may transgress Trade Practices laws. There is no exact measure of profit.
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