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What is wrong if anything with saying the basic financial goal of a business is to maximize profits?
Wiki User
∙ 10y ago
The argument against this being the sole purpose of a company is that it is not a true mission statement--it should also include customer service, integrity, value or benefit of the product and whatever it is offering for these profits. In the 1990's and even now, some investors (e.g.Icann, Bain) bought companies with the sole purpose of "monetizing" them by selling off unprofitable portions and reorganizing the rest. This made a lot of money for them and there is some discussion in the news and literature about whether this causes the rest of the company to go under or not, since the profits of selling usually do not go to the cash coffers of the remaining portion. In the last year or so, there have been instances of investors taking over the boards (e.g. JC Penney) with various success. So, yes, this saying may be fine for the investors, but as far as creating value for the workers and customers of the company, not so good.
Wiki User
∙ 10y ago
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What are financial objectives of multinational companies?
to maximize profits for their owners.
The objective of Management is to maximize profits?
It is a true statement that the objective, or goal, of management is to maximize profits. Another term for profit would be financial gain.
how to get help for accounting small business online?
It is always best to go to financial aid centers that are able to help you choose the best financial decisions to maximize your profits. It is always best to hire some professional service to help you.
What is objective in business?
A business' objective is to make money. They are in business to make money for their stockholders. They sell products and services to maximize their profits.
Is Profit maximization the primary goal of any business enterprise?
Yes, profit maximization is the primary goal of a business. If a business doesn't maximize profits the Board of Directors can request that the CEO leave.
What are the characteristics of business market?
Characteristics of the business market include, the fact that there are many buyers and takers. Another characteristic is the fact that managers will try to make decisions that maximize profits.
Which type of business earns huge profits?
realestate, stocks, anything in the technology field.
Disadvantages of trade barriers?
Trade barriers impact businesses. International businesses can't maximize their profits with trade barriers in place. They have to find other alternatives for business.
How does business influence government in Australia?
Business attempts to keep the government in Australia from over regulating it. They also attempt to keep taxation of profits to a minimum and they try to influence labor laws to maximize workforce efficiency.
What is the goals of a Corporation?
The goal of a corporation is to maximize profits. Furthermore, the goal of a publicly traded corporation is to maximize value for its shareholders.
Explain why producers have to have the profit motive?
Every producer must make a profit in order to remain in business. Without profits, businesses disappear.
Core function of an organization?
To maximize profits with limited resources at a minimum cost.
