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Why is derivatives important?
the simply meaning of derivative is a market which is helps to minimized the risk of loss. and the main objective if any business is to bring maximized profit to company so that's the reason to derivatives is important.
What is the difference between shareholder's wealth maximization and shareholder's profit maximization?
Wealth is the accumulation of profit so it might seem that the two are maximized in the same way. But there are differences. Some examples:- Profit may be taxed. So wealth is maximized by maximizing the net of profit minus tax impacts which may occur in the future.- Increased value of an investment would add to wealth but would not show up as profit until the investment is sold.-Wealth may be obtained in ways other than profit. Receiving a gift or buying something for less than its real value may add to wealth but are not profit.-Stock buy-backs by a company produce no profit but increase stockholder wealth by driving up the value per share held.
Why profit maximization is not regarded as the core financial objective of firm?
Profit Maximization is a short term objective as all it aims for is to generate a higher revenue for the period.This objective is generally followed if the firm is highly leveraged and a higher profit is required to service it. Wealth Maximization is followed as it looks to increasing the market value of the firms share capital and thus leads to an overall development of the firm and its capacity.
What is profit seeking organization?
Some organisations,such as companies and partnerships, see their main objective as maximising the wealth of their owners. Such organisations are often referred to as 'profit - seeking'
Wealth mazimazation objective is superior to profit maximazation objective?
Wealth maximization is originally an effort to increase the wealth of employees, shareholders, and investors. In many implications it is equal to profit maximization. Whereas, if consumers are empowered by wealth they are willing to invest more in services. It can be a double edge sword however, neither objective can survive without the other.
Difference between function and objective function?
The linear function Z=c1x1+c2x2+c3x3+..........+cnxn which is to minimized or maximized is called Objective Function of general Linear Programming Problem.The innequalities of LPP are called constraints.
What is the price of a bowler wildcat?
Profit is maximized.
Why is derivatives important?
the simply meaning of derivative is a market which is helps to minimized the risk of loss. and the main objective if any business is to bring maximized profit to company so that's the reason to derivatives is important.
What happens when marginal revenue equals marginal cost?
profit is maximized
What is arsene wengers hobby?
To minimize cost in order to maximized profit.
The controller of a monopoly sets the price of goods by charging?
the price at which the profit is maximized
In a firm where assets are the major cost how is profit maximized?
By increasing revenues or the cost of the assets.
Profit maximization is the basic objective of firm?
A firm's main objective should be to make decisions that maximize the value of the company for its owners, and as the owners of a company are its shareholders, the main financial objective should be 'the maximization of shareholder wealth'. Since shareholders receive their wealth through dividends and capital gains, shareholder wealth will be maximized by maximizing the value of dividends and capital gains that shareholders receive over time. Problems with the 'maximization of profits' objective: Firstly, there are quantitative difficulties associated with profit. Maximization of profits as a financial objective requires the profit to be defined and measured accurately, and that all the factors contributing to it are known and can be taken into account. It is very doubtful that this requirement can be met on a regular basis. E.g- If 5 auditors go into the same company, it is very likely that each will come out with a completely different profit figure. A second problem concerns the timescale over which the profit should be maximized. Should profit be maximized in the short term or the long term?? Given that profit considers one year at a time, the focus is likely to be on short-term profit maximization at the expense of long-term investment, putting the long term survival of the company into doubt. There are many examples of companies going into liquidation shortly after declaring high profits. Check out - Polly Peck Plc's dramatic failure in 1990! (good example) The third problem is that profit does not take account of or make any allowance for risk! It would be inappropriate to concentrate efforts on maximizing accounting profit when this objective does not consider one of the key determinants of shareholder wealth. So the 'maximization of profit' is not a suitable core objective for a company. That is not to say that a company does not need to pay attention to its profit figures, since falling profits of profit warnings are taken by the financial markets as a sign of financial weakness. Instead these sort of profit targets/objectives should can serve a useful purpose in helping a company to achieve short-term or operational objectives within its overall strategic plan.
What is the objective of dabur?
to earn the profit
What is isoprofit line?
Any line belonging to the system of parallel lines to the given objective function for various values f is called ISO - profit line
Function of Objective lens?
Objective lens function is to show the microcosm in 3 different zooms.
What are the mean objective of computer companies?
To make a profit.
