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Wealth mazimazation objective is superior to profit maximazation objective?
Wiki User
∙ 9y ago
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.
Wiki User
∙ 9y ago
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Is wealth maximization superior to profit?
yes
Contrast the objective of maximizing earning with that of maximizing wealth?
\yes it is
Explain the rationale for selecting shareholders wealth maximizatio as the objective of the firm?
Explain the rationare for selecting shareholder wealth maximization as the objective of the firm.Include a consideration of profit maximization as an alternative goal
Objective of management?
From a theoretical point of view, the ultimate objective of any manager should be to maximise shareholder wealth.
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.
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 is objective of investment?
to maximise the wealth of the investors.
Is wealth maximization superior to profit?
yes
In what ways is wealth maximization objective superior to the profit maxim?
Wealth maximation aims in maximising Shareholders wealth, employees wealth, profiting the external and internal parties of the firm, vendors, vendees, customers, investors, employers and all the parties interested in the benefit of the company. Wealth maximation results in increased goodwill, branding and reputation of the company. Where as profit maximation only deals with increased profits. Wealth maximation is a wider concept
What is the difference between maximising wealth and maximising profits for corporations and which you think is superior?
what is the difference between maximising wealth and maximising profits in a corporation and which do you think is superior?
What is objective of investment management?
to maximise the wealth of the investors.
Contrast the objective of maximizing earning with that of maximizing wealth?
\yes it is
Explain the rationale for selecting shareholders wealth maximizatio as the objective of the firm?
Explain the rationare for selecting shareholder wealth maximization as the objective of the firm.Include a consideration of profit maximization as an alternative goal
Objective of management?
From a theoretical point of view, the ultimate objective of any manager should be to maximise shareholder wealth.
What are the Objectives of wealth management?
The objective of wealth management is to enhance the wealth of the person for whom it is being taken up. For example, if you opt for wealth management product given by an investment bank, then their object is to maximize your wealth.
If all companies had an objective of maximizing shareholder wealth would people overall tend to be better or worse off?
If all companies had an objective of maximizing shareholder wealth would people overall tend to be better or worse off?
Which is more comprehensive objective profit maximization or shareholder wealth 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.
