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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.
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What is the Difference between gross profit and fluctuating profit?
The difference is, that gross profit includes deduction from manufacturing cost. Sales value - Rawmaterial - Freight = Fluctuating Profit - Manufacturing Cost - Procurement = Gross Profit - Operating Expenses = Operating Profit
What is the difference between inputs and outputs in business?
Every production company adds value to the material it purchases in order to sell those at a profit. Thus inputs are everything necessary to add value to a product and outputs are the products that can be sold after the value has been added.
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.
What is Three basic reasons is profit maximization inconsistent with wealth maximization?
Profit maximization is a narrow view which accounts for only the difference between sales and costs Wealth Maximization is broader and more philosophical in approach. Wealth maximisation includes not exhaustively culture , synergy, value, potential and wealth
How can I predict and profit from a stock's decline in value?
One way to predict and profit from a stock's decline in value is by short selling. This involves borrowing shares of a stock from a broker and selling them at the current price. If the stock's value decreases as you predicted, you can buy back the shares at a lower price and return them to the broker, pocketing the difference as profit. However, short selling carries risks and may result in losses if the stock's value increases instead.
Difference between Value added and profit?
value added is cool thing but profit is not really cool
What is the difference between profit maximization and value maximization?
discount rate
What is the Difference between gross profit and fluctuating profit?
The difference is, that gross profit includes deduction from manufacturing cost. Sales value - Rawmaterial - Freight = Fluctuating Profit - Manufacturing Cost - Procurement = Gross Profit - Operating Expenses = Operating Profit
What is the difference between profit maximization and wealth maximization?
Shareholder wealth (more commonly referred to as shareholder value) is talking about the value of the company generally expressed in the value of the stock. Profit maximization refers to how much dollar profit the company makes.
Differentiate between value for money and profit maximization concept in corporate governance?
differentiate between value for money and profit maximization
What the difference between actual value and earned value?
The difference between the Actual Value & Earned Value is the Project Cost Variance
What is the difference between the place value and face value of 9 in 309812?
the DIFFERENCE between the place value and the face value is 991
What is the difference between goodwill and brand name?
Goodwill is the difference between the price paid for a business and the net book value of assets in the balance sheet of that business. The price paid for a business is usually more closely related to its profit stream rather balance sheet value. A strong brand can influence profit but would not appear as an asset on the balance sheet. The level of profit could also be influenced by staff competences and staff competences are not shown as an asset on the balance sheet. That difference between price paid and balance sheet value of assets might be due to the strength of the brand name, but it could also be due to other things.
What did Marx call me differences between what the workers produce and what they earn?
Marx referred to the difference between what workers produce and what they are paid as "surplus value." This surplus value is captured by the capitalist as profit, leading to exploitation of the workers according to Marx's theory of surplus labor.
What is the difference between ethical value and value?
search
How is a margin determined?
There are different kinds of margin. In printing, a margin is the distance between the edge of a physical page and where on the page the printing is. In business the margin is the difference between the market value of a stock and the loan a broker makes. A profit margin is calculated by finding the net profit as a percentage of the revenue.
Why labor is different from other factor of production?
Yes because of the human factor.
