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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.
Profit Maximization is a short term objective as all it aims for is to generate a higher revenue for the period.This objective is generally followed if the firm is highly leveraged and a higher profit is required to service it. Wealth Maximization is followed as it looks to increasing the market value of the firms share capital and thus leads to an overall development of the firm and its capacity.
Some organisations,such as companies and partnerships, see their main objective as maximising the wealth of their owners. Such organisations are often referred to as 'profit - seeking'
To put the corporate money into the best place which can generate long term- profit of the corporation.
Explain the rationare for selecting shareholder wealth maximization as the objective of the firm.Include a consideration of profit maximization as an alternative goal
benifit maximazation
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.
how old are you, 4! you can answer it! uh. no. that's not the answer. its benefit maximazation.
to earn the profit
The maximization of a shareholder's profit is at a point where the value of share is maximum and dividend on the share paid by the company is also very high but only few successful companies give such profit maximization to their shareholders and the listings of such companies can be found out on activetrader-links.com for investment purposes.
To make a profit.
nop!
1. Profit Maximisation is the main objective of a firm" Discuss this statement with the help of an example.
is to make profit best answer in the world
Organizational objective is predetermined, which activities are aimed. Description of organizational objective is general and qualitative. For examples: To earn a profit of 24% in 2011.
Profit maximization IS an objective of a firm, but its not the ONLY objective. A firm will have different long term and short term goals which will vary depending on the current business cycle. If you need a more specific answer, please ask a more specific question. - Stavka
The objective of a mutual fund is to pool in money from investors and use it to invest in investment vehicles thereby trying to generate profit for the investors and use the same to profit the company that runs the Mutual fund.