False, it is Not true that the the ultimate measure of performance of the firm is what the firm earns, rather the Ultimate measure of performance of the firm is how earnings are valued by the investor.
What is Firm Performance?
Firm performance is an economic theory that describes the ability of firms in using human resources and material resources to achieve the targets of the firm.
These targets by the firms are usually set in other to meet the expectations of the investor.
Firm performance is also to consider the efficiency of using business means during the production and consumption process.
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