Discuss the difference between managerial and non managerial tasks?
planning, organising, controling.
4 basic managerial task of an enterprenuer
4 basic managerial task of Entrepreneurs
4 basic managerial task of an enterprenuer
Criticism of Baumol's sales maximization model includes the assumption of profit maximization as the main goal of firms, the lack of consideration for other objectives like shareholder wealth maximization, and the oversimplification of managerial behavior by focusing solely on sales revenue. Additionally, critics argue that the model does not account for dynamic market conditions and competitive strategies that firms may adopt.
Managerial actions that can influence the value of the firm include preserving the reputation of the firm by being ethical and responsible. Also, they need to invest in providing quality services and products that will keep the firm competitive.
Under what conditions might profit maximization not lead to stock price maximization?"
Not necessarily
sales maximization technique is generally used in scale industries where base of the expenses is largelly fixed and where variable costs are limited. on the other hand profit maximization technique are used by variety of industries. total output is higher in sales maximization as compared to profit maximization
discount rate
Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization
Wealth maximization of financial management focuses on increasing fixed and current assets while value maximization focuses to strengthen intangible assets.
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.
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.
it is operating cost
The objective of financial management is wealth maximization rather than profit maximization. Wealth maximization means the total value of the firm.