Want this question answered?
Profit maximization will not lead to share price maximization if the organization is working on building wealth in the future. With long range goals, the profits will be delayed until future goals are met.
Under what conditions might profit maximization not lead to stock price maximization?"
There are various conditions under which profit maximization may not lead to stock price maximization. Some of them include outstanding shares and assets falling below the cost of the debt among others.
The agency problem is a result of the separation between the decision makers and the owners of the firm. As a result managers may make decisions that are not in line with the goal of maximization of shareholder wealth.
One might find information about aggressive growth mutual funds from one's local bank or investor group. Online there are various sites which explain what aggressive growth mutuall funds are.
Profit maximization will not lead to share price maximization if the organization is working on building wealth in the future. With long range goals, the profits will be delayed until future goals are met.
Under what conditions might profit maximization not lead to stock price maximization?"
There are various conditions under which profit maximization may not lead to stock price maximization. Some of them include outstanding shares and assets falling below the cost of the debt among others.
When space maximization is a factor.
It means there is a character but another character is in disagreement or standing as an obstacle to the original character's goals. Other kinds of conflict might be character vs environment or character vs self.
Character vs self is a literary conflict where a character struggles with inner emotions, beliefs, or values that create tension in the story. This conflict typically involves a character confronting their own flaws, fears, or desires, leading to internal growth or change.
The agency problem is a result of the separation between the decision makers and the owners of the firm. As a result managers may make decisions that are not in line with the goal of maximization of shareholder wealth.
because u need to no what goals you might need and might not need
Profit Maximization is an interesting and rather deep issue in Economics. Please understand that this question can be answered from various approach and interpretation. There are other disciplines like Business and Management which offers a slightly different answer.For example, if you are a Finance student, you might use the term to maximize shareholder value. ( which can be different from this goal ). From my understanding, profit maximization alone cannot be an appropriate goal for a firm. When I teach my students, I often ask them, if each of you start a company today, will the reason to do so, just to maximize profit ?. Although many firms do aim to maximize profit in their existence, not all do so. When we say maximize profit, this means to get the most profit in the firm's existence. And there are other firms that don't. Other goals of the firm can be expansion or growth, where they focus on establishing more branches or growing larger, while other firms focus on sales maximization, where they focus on selling more. There are also other firms that put the environment or social issues as their goal. ( although this can be argued if it's a marketing ploy ). Apart from these different goals of firms, we need to understand that different firms have different goals. A small grocery shop will have a different goal than a multinational company. And a different environment can also affect the goals of the company. If the firms operates in a monopolistic environment, then profit maximization is possible, as it's the only firm. If the firm operates in a perfectly competitive environment, the goal of profit maximization is not possible, as profit can be influenced by new firms who enter the environment and old firms who exit it.
Conflict develops because of different ideas and beliefs. People might disagree on certain ideas and it might cause conflict.
There are several reasons why a nation might adopt policies to support self sufficient growth. Countries often do things that will help them grow on their own in order to make things easier, and it prevents them from having to rely on other parts of the world, which can often lead to conflict.
i want to know some factors which might prevent people achieving their goals i want to know some factors which might prevent people achieving their goals