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February 13th, 2019, 08:14 AM   #1
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From: Israel

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Finance

Hello

Can you help me please about the next sentence:

The firm's goal is to profit.
What is the source of the difference between defining the firm's goal in financing theory and its definition in the basic economic theory (it is necessary to relate to the time factor and the risk).

I don't know what and how to answer, a lot of thoughts go through my mind because I have several answers for the question.
I answered: In financing theory the definition of profit (the firm's goal) depends on different firms/people profits to compare (even if the profit is positive), while the definition of profit in the basic economic theory is just when you earn more than you lose.

I really don't know if the answer is correct, our lecturer just did put this question and asked for us (students) for answer, I'm still thinking because it feels like the question is too general, I don't know... maybe it's just me.
And I didn't even answer about time and risk, because I don't know what to answer :\

Thanks!

Oh, if you didn't understand something then tell me please and I will try to explain you

Last edited by IlanSherer; February 13th, 2019 at 08:17 AM.
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February 14th, 2019, 06:12 AM   #2
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Quote:
Originally Posted by IlanSherer View Post
The firm's goal is to profit.
What is the source of the difference between defining the firm's goal in financing theory and its definition in the basic economic theory (it is necessary to relate to the time factor and the risk).
YOUR opinion is being asked for...not ours...
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February 14th, 2019, 06:16 AM   #3
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Quote:
Originally Posted by Denis View Post
YOUR opinion is being asked for...not ours...
Thanks for answer

It would help if people would write their opinions, I would compare and understand better (or learn something new).
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February 14th, 2019, 06:39 AM   #4
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You want people to form your opinion for you?
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February 14th, 2019, 07:37 AM   #5
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IlanSherer, it would be helpful if you posted your opinion so others have something to work with when giving assistance.
Thanks from Denis
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