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By generating profits.
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What is the relationship between accounting and economics?
Relation between Accounting and Economics. Accounting and economics relates to each other in the way that both of them consider the effective and efficient use of resources, particularly when they are scare, and also maximizing the wealth. However, Accounting is the activity which provide information to the owner of the business firm, effective and efficient use of resources and maximization of the wealth of the owner of the firm, While economics does all the activities for the nation and not for an individual.
Why maximizing shareholers' wealth is always the goal of a firm instead of maximizing profits of the firm's?
The foundation of a firm is the investment, the wealth of its promoters and more importantly the share holders. Share holders have invested their money in the firm basing on the confidence they have on the firm and believing that their investment will be safe and will fetch good reasons. Once their trust is shaken, it will ruin the firm. On account of all these, the primary goal of a firm is to maximise the share holders' wealth.
Why wealth maximization is the ultimate goals of a firm?
8099
Who creates a deed restriction?
The owner of the land can create a deed restriction.The owner of the land can create a deed restriction.The owner of the land can create a deed restriction.The owner of the land can create a deed restriction.
What is the definition of 'wealth maximization'?
wealth maximisation is the appropriate objective of an enterprise financial theory asserts that wealth maximization is the single substitute for a stock holders utility. when the firm maximizes the stockholders wealth the individual stockholder can use this wealth to maximize his individual utility.it can be calculated as: stock holder current wealth in a firm =(n.o of share owned) *(current price per share)
What is the new foreign competitors shareholder wealth-maximization of a firm?
COB
Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization because?
Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization
Does entrepreneurship create wealth?
yes
Liquidation value of the firm asset could be considered as?
The average wealth of shareholder
The shareholder wealth maximization goal state that management should maximize the percentage value of the future returns to the owners of the firm?
owners of the firm
What is lola in Yoruba language?
In Yoruba, "Lola" can mean grandmother. It is a term of endearment used to refer to one's maternal grandmother.
In financial theory the objective is to maximize shareholder wealth and not maximize profit?
Maximizing shareholder wealth and maximizing profit goes hand in hand. A firm maximizes shareholder wealth by investing in projects that will increase profits and the cash flows of the firm, finding ways to prudently cut variable and fixed operating costs and creating products that will increase revenues. The firm's executives must also manage the company and its operations in a fiscally responsible manner in order to increase the profitability of the company. By taking these steps the firm therefore increases the shares of its stocks which increases shareholder wealth.
