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Use the income statement to determine earnings after taxes (net income) and divide by the forecasted period's earnings after taxes. Profit maximization will not lead to increasing short-term profits at the expense of lowering expected future profits. business includes assessment of the market and the needs of the customers, as well as the development of a strategy to satisfy those needs profitably. Then subtract 1 from the previously calculated value. Concept (c) is paired with option (i). Profit maximization is concerned more with maximizing net income than the stock price. EPS maximization ignores the firm's risk level. Download Banking MCQ Question Answer PDF. Professionals, Teachers, Students and Kids Trivia Quizzes to test your knowledge on the subject. Business Finance MCQs Last modified on September 12th, 2020 Download This Tutorial in PDF (1) In which type of business all owners share in gains and losses and all have unlimited liability for all business debts . 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