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Why is wealth maximization a better operating goal than maximization sale?
Wiki User
∙ 10y ago
The wealth maximization increases the net value that is current. The maximization sale involves obtaining the highest amount of sales without incurring any loses. Each, especially when used together, can be the better operating goal depending on the situation in which they are needed to be used.
Wiki User
∙ 10y ago
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What is meant by the goal of maximization of shareholders wealth?
The goal of maximization of shareholder wealth is meant by; first, in most cases
How does the goal of maximization of shareholder wealth deal with the problems?
How does the goal of maximization of shareholder wealth deal with uncertainty and timing?
How does the goal of maximization of shareholder wealth deal with those problems?
How does the goal of maximization of shareholder wealth deal with uncertainty and timing?
Outline how an agency problem can interfere with the implementation of the goal of shareholder wealth of maximization?
Outline how an agency problem can interfere with the implementation of the goal of shareholder wealth of maximization
Goal of the firm?
profit maximization &wealth maximization of shareholders.
Maximization of shareholder wealth as a goal is superior to profit maximization because?
it is operating cost
What is meant by the goal of maximization of shareholders wealth?
The goal of maximization of shareholder wealth is meant by; first, in most cases
How does the goal of maximization of shareholder wealth deal with the problems?
How does the goal of maximization of shareholder wealth deal with uncertainty and timing?
How does the goal of maximization of shareholder wealth deal with those problems?
How does the goal of maximization of shareholder wealth deal with uncertainty and timing?
Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization because?
Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization
Outline how an agency problem can interfere with the implementation of the goal of shareholder wealth of maximization?
Outline how an agency problem can interfere with the implementation of the goal of shareholder wealth of maximization
Goal of the firm?
profit maximization &wealth maximization of shareholders.
What is the concept of maximization of shareholder wealth Why is wealth maximization better than profit maximization Wealth maximization?
The concept of maximizing share holder wealth is a goal that encompasses everything that is expected out of a management. when would share holder wealth increase? Either by dividends or by increase in value of the shares. When can a company declare dividends or when would a company's share value increase? when its profits increase, its net sales and revenue increase etc. so indirectly by trying to achieve one goal we are attaining some other goals that are very important for a company's existence.
Explain the rationale for selecting shareholders wealth maximizatio as the objective of the firm?
Explain the rationare for selecting shareholder wealth maximization as the objective of the firm.Include a consideration of profit maximization as an alternative goal
What is the agency problem and how might it impact the goal of maximization of shareholder wealth?
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.
Why is adjusting the WACC upwards consistent with the overall corporate goal of shareholder wealth maximization?
why? isn't it to adjust it downwards to max. shareholders wealth?
What is the difference between profit maximization and wealth maximization?
Shareholder wealth (more commonly referred to as shareholder value) is talking about the value of the company generally expressed in the value of the stock. Profit maximization refers to how much dollar profit the company makes.
