Yes, profit maximization is the primary goal of a business. If a business doesn't maximize profits the Board of Directors can request that the CEO leave.
offcourse profit maximization is the goal of financial management eventhough it has limitation regard to time value of money,quality and risk.
Yes, profit making is the primary goal of business. It is the reason businesses exist. If they don't make a profit, they will not survive.
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Yes, businesses exists to make money. If a business isn't profitable then it will go out of business and the investors will lose money.
The main and primary goal of the business no matter what kind of nature it has, is only profit maximization. There may also be some secondary purposes such as well being of people or offering services to the society but the primary focus is PROFIT. http://www.aidandtrade.com/
Profit maximization is the ONLY appropriate goal for a business. Even under a so-called "social responsibility" regime, a business only engages in such schemes because it thinks it can increase profits by doing so.
The advantages of profit maximization is that creates a cash flow and investors become interested in companies that are maximizing their profits. The main disadvantage of it is that there are risks for business owners involved.An advantage of profit maximization is that it could create a huge increase in cash flow as long as the market remains good. However, a disadvantage is that if the market collapses during a period of profit maximization the business could lose everything.
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In profit maximization, the ultimate aim of the business is profit. When profit is the main target, focus on other factors like investment, expansion, usage of the product, creating goodwill, ethics, etc., are lost or given minimum priority.
Under what conditions might profit maximization not lead to stock price maximization?"
Profit maximization. Also called maximizing shareholder wealth.
Not necessarily
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