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What are the difference between value maximation and profit maximation?
Yburenahj69
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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