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Making Money

Dr. Eli Goldratt states that "THE GOAL OF THE FIRM IS TO MAKE MONEY". Do you agree or disagree with this statement? Support your position with at least two examples of companies that may or may not follow this statement.

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I definitely agree with this statement. When we look at the companies that provide the greatest returns to shareholders, which encourages further investment and expands the economy, and have the most sales (which also acts as an expansion), we see that they are the companies with the ultimate goal of making money. If we have a high number of companies that do not put making money at the forefront, those companies will likely fail. Consider the main reason why companies are in business. Companies strategically plan to dominate market share. Management devises plans to engage in research and development, and to plan marketing strategies that will overtake the market -- in an attempt to make ...

Solution Summary

This solution explains if the goal of the firm is to make money. A comprehensive discussion with multiple examples is provided.