The very premise of this question is that profit maximization is not an appropriate goal. However, this assumes that profits exist in a vacuum, that somehow profits exist outside of people and goods and services they create. A business produces and sells goods and services that satisfy a society's needs. In a free society, the way to profit from this is to continuously listen to and address your customers' needs. Therefore, maximizing your profits is in fact an appropriate goal, as it ensures you will address the specific needs of a certain group of people. Profit maximization is therefore an appropriate goal. The ways in which someone achieves that, however, can sometimes be inappropriate, such as bribing government to enact laws favoring your business to keep out competitors.
Because it does not consider the riskiness of returns and it ignores the timing of returns.
Identify the various factors that can influence a company's primary goal of maximizing shareholder wealth.
Since no business is for charity, profit is a prerequisite for any business. Excepting for NGO and philanthropic organisations, the whole business world is being motivated by the ultimate goal of maximizing profit margin. This propels them to further expansion of business, acquiring or switching over to new business or so on.
Vandalism/Creating Inappropriate Pages/Creating Inappropriate users
As a joint stock company profit was the goal.
Yes, profit making is the primary goal of business. It is the reason businesses exist. If they don't make a profit, they will not survive.
The ultimate goal is profit.
A goal of firm isn't always profit driven, it can be any cause. Profit maximization is revenue driven, making more money is it focus.
To make a profit
what should be goal of a firm
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The four cases that explain the fulfillment of any manager goal regarding the profit.
The profit maximization principle stresses on the fact that the motive of business firms to maximize profit is solely justified as being a method of maximizing the income of their shareholders. Firms may maximize profit by maximizing sales, stock price, market share or cash flow. In order to achieve maximum profit the firm needs to find out the point where the difference between total revenue and total cost is the highest. The rules that apply for profit maximization are: i. increase output as long as marginal profit increases ii. profit will increase as long as marginal revenue (MR) > marginal cost (MC) iii. profit will decline if MR < MC iv. summing up (ii) and (iii), profit is maximized when MR = MC For a clearer view and calculations and graphical representations of the goal of profit maximization go to the following link: http://www.google.com.bd/search?hl=en&client=firefox-a&rls=org.mozilla:en-US:official&hs=Kr7&q=profit%2Bmaximization%2Bprinciple&start=10&sa=N
their main goal of course is to gain more profit for the target market.
offcourse profit maximization is the goal of financial management eventhough it has limitation regard to time value of money,quality and risk.
The primary goal of for profit companies it so make money
To make a profit or a bigger profit. To maximize the wealth of stockholders or price of the shares
To control a market so as to maximise profit.
To profit from the sugar trade