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How does the goal of stock price maximization benefit the society at large?
Wiki User
∙ 14y ago
The society benefit through
consumer benefit
employee benefit
Wiki User
∙ 14y ago
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Is stock price maximization good or bad for the society?
of course it is bad research about it
What is the difference between stock price maximization and price maximization?
Profit maximization does not reflect (1) the timing of profits and (2) the riskiness of different operating plans. However, both of these factors are reflected in stock price maximization.
Why wealth maximization is a function of share price maximization?
because the maximazation is a Behavior that attempts to maximize such performance measures as revenue, profits, contribution margin, or expected net present value
Why is that profit maximization may not necessary lead to wealth maximization?
Because as the price of a commodity increases, the purchasing power of consumers reduces. Consumers will then shy away and only few people would be able to pay for the extra. Thus, increase in profit may not necessarily mean maximization of wealth.
Are physicians price setters or price takers?
I think they are price setters , since they seek utility maximization ! so each of them can balance between (net income , leisure - inducement ) through setting individual price different from another physician .
Is stock price maximation good or bad for society?
The same actions that maximize stock prices also benefit society. Stock price maximization requires efficient, low cost operations that produce high quality goods and services at the lowest possible cost. Stock price maximization requires the development of products and services that consumers want and need, so the profit motive leads to new technology, new products and new jobs. Also, stock price maximization necessitates efficient and courteous service, adequate stocks of merchandise and well located business establishments.
Is stock price maximization good or bad for the society?
of course it is bad research about it
Under what conditions might profit maximization not lead to stock price maximization?
Under what conditions might profit maximization not lead to stock price maximization?"
What is the difference between stock price maximization and price maximization?
Profit maximization does not reflect (1) the timing of profits and (2) the riskiness of different operating plans. However, both of these factors are reflected in stock price maximization.
Wealth maximization is a function of share price maximization discuss?
the difference between Profit maximisation and share price maximisation
Under what conditions might profit maximization not lead to share price maximization?
Profit maximization will not lead to share price maximization if the organization is working on building wealth in the future. With long range goals, the profits will be delayed until future goals are met.
Under what condition might profit maximization not lead to stock price maximization?
There are various conditions under which profit maximization may not lead to stock price maximization. Some of them include outstanding shares and assets falling below the cost of the debt among others.
Why wealth maximization is a function of share price maximization?
because the maximazation is a Behavior that attempts to maximize such performance measures as revenue, profits, contribution margin, or expected net present value
What are the difference between value maximation and profit maximation?
Value maximization and profit maximization are very much related, the main difference being- value maximization means increases in owners' wealth achieved by maximizing of the value of a firm's common stock. profit maximization is the process by which a firm determines the price and output level that returns the greatest profit. the other difference among the two could be sited as- value maximization is seen as long term objective of a firm, whereas profit maximization is generally a short term objective.
Why is that profit maximization may not necessary lead to wealth maximization?
Because as the price of a commodity increases, the purchasing power of consumers reduces. Consumers will then shy away and only few people would be able to pay for the extra. Thus, increase in profit may not necessarily mean maximization of wealth.
Are physicians price setters or price takers?
I think they are price setters , since they seek utility maximization ! so each of them can balance between (net income , leisure - inducement ) through setting individual price different from another physician .
Profit maximization vsealth maximization in financial management of an organization?
Profit maximization is also about increasing the EPS (earning per share) of the shareholders and to maximise the net present worth. Main objective of co is profit maximization EPS: net profit/ no of shares outstanding. Wealth maximization is anything having value. Anything which can be expressed in money value or economic value which is considered as wealth. Baisc objective of a co is wealth maximization. How to increase the wealth: By producing a quality product at a competitive rate. By giving product at reasonable price. Good after sales service. this all things leads to increase in co's wealth.
