Making decision based on profit maximsation focus on accounting income and may be manipulated as it tends to focus on the short term, it can therefore be regarded as too simplistic as it does not consider cash flows, is biased towards short run returns and ignores the relative riskiness of the alternative.
what should be goal of a firm
what are the limitation and disadvantages of profit maximization
Profit maximization increase the graph of outputs.
Under what conditions might profit maximization not lead to stock price maximization?"
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wealth maximization is a stratigic target of the entity , while the profit maximizations is a tactical one . the profit maximization always concern with the operational plans .... and the wealth maximization always concern with top managements plans .
profit maximization &wealth maximization of shareholders.
the difference between profit maximization and shareholders wealth maximization is that profit maximization is concern with profit that a company received based on inflow and outflow within a period while shareholders wealth maximization is concern with dividend and capital gain that shareholder received on a return of his/her investment.
Profit maximization ignores the risk associated with the stream of cash flow with the product. Also, profits for different types of stakeholders can not be maintained with profit maximization.
The benefits of profit maximization include top performance from workers and more market share for the customers. When a company focuses on profit maximization, their shareholders are happy.
Profit maximization can be both good or bad. Done correctly, profit maximization helps the company provide great products and services for customers.
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
profit maximization is the (short run) process by which a firm determines the price and output level that returns the greatest profit
Profit Maximization model means a scenario where the busniess is runned by the motive of profit making and keep the cost low.
Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization
WHAT IS THE PROFIT MAXIMISATION?
what is ultimate goal of firms.
differentiate between value for money and profit maximization
Wealth maximization: To stay invested and multiply your invested money. The term is used for long-term investors. Short-term investors work for profit maximization. They sell their shares, as and when they get profit from the market.
Profit maximization is short term as compare to share holder's wealth maximization, Managers should focus on Share holder's wealth maximization because its what they are hired for. also there are sevseal reasons such as.... 1) the share holders wealth is be considered.. 2)profit maximization doesnt say which type of profit it should maximize-short term or long term 3)profit maximization ignores the social values but only aims at earning maximum profit. 4)wealth maximization also considers improving the goodwill of the organization
it is operating cost
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