Assertion (A): Profit maximization as an objective does not take into account the time pattern of returns. Reason (R): The finance managers will accept highly risky proposals if they give high profits by applying the profit maximization concept. Select the correct answer from the options given below.

Question:Assertion (A): Profit maximization as an objective does not take into account the time pattern of returns. Reason (R): The finance managers will accept highly risky proposals if they give high profits by applying the profit maximization concept. Select the correct answer from the options given below.

1.Both A and R are true and R is the correct explanation of A.

2.Both A and R are true but R is not a correct explanation of A.

3.A is true but R is false

4.A is false but R is true

Answer:2