Profit maximization increase the graph of outputs.
Create wealth and opportunity
The objective of financial management is wealth maximization rather than profit maximization. Wealth maximization means the total value of the firm.
advantages of profit centre
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.
what are the advantages of profit and loss statement?
Advantages of profit and loss? keep track of your profits
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.
Under what conditions might profit maximization not lead to stock price maximization?"
Not necessarily
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Profit maximization can be both good or bad. Done correctly, profit maximization helps the company provide great products and services for customers.
sales maximization technique is generally used in scale industries where base of the expenses is largelly fixed and where variable costs are limited. on the other hand profit maximization technique are used by variety of industries. total output is higher in sales maximization as compared to profit maximization
discount rate
Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization
WHAT IS THE PROFIT MAXIMISATION?
differentiate between value for money and profit maximization
If the company is public listed (trades in the stock market) their aim is shareholder wealth maximization whereas for a privately owned firm a profit maximization objective is appropriate.
it is operating cost