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Will profit maximisation necessarily lead to wealth maximisation?
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∙ 12y ago
Assuming that you understand what is maximisation, the the question is left only with two words, profit and value.Profit = Incomes - Expenses, while value is simply the relative worth (in monetary or...analysis of shareholder wealth maximization.While it is easy to see why you might think this, theoretically a sponsorship should be useful as an advertisement. Furthermore, if the sponsorship is of a nonprofit such as a scholarship or an AYSO..
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∙ 12y ago
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Why is that profit maximization may not necessary lead to wealth maximization?
Because as the price of a commodity increases, the purchasing power of consumers reduces. Consumers will then shy away and only few people would be able to pay for the extra. Thus, increase in profit may not necessarily mean maximization of wealth.
Under what conditions might profit maximization not lead to share price maximization?
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.
What is growth maximisation?
Growth depends on the volume of investment. Investment depends on capital availability. Capital may come from either internal or external source. External source of capital is costly where as internal generation of funds is economical. Generation of internal capital depends on profit making capacity of a firm. Hence, profit maximization would automatically lead to growth maximization
How did wealth lead to the abbasid downfall?
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Under what conditions might profit maximization not lead to stock price maximization?
Under what conditions might profit maximization not lead to stock price maximization?"
How did the same wealth that brought the abbasids power to lead their downfall?
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What are the arguments in favor of wealth maximization as the objective of a firm Why is profit maximization?
The arguments in favor of wealth maximization as the objective of a firm are that it aligns the interests of shareholders and management, promotes long-term sustainability, and encourages efficient allocation of resources. Profit maximization, on the other hand, may lead to short-term thinking, unethical practices, and neglect of other stakeholders' interests. By focusing on wealth maximization, firms can generate sustained value for shareholders and society as a whole.
Does shareholder wealth maximization benefit society as a whole?
Of course yes, if organization assum objectives of shareholders wealth maximization, it will struggle for profit maximization which will lead to more operations. operations of business needs employees, which will be hired from the society and the unemployment rate will decreased, on the other hand the organization will survive in long run and would meet the demands of the society as whole.... Haleem Graduate school of business University of gothenburg Sweden
How did surplus lead to trade?
Surplus are basically excess products which may of course lead to trade. After all, these excess products may lead to excess profit as well
How does ethics contribute to shareholder wealth?
Ethics contribute to shareholder wealth in a very huge manner. With proper ethics, it will lead to customer satisfaction which will increase the sales and cash flow which are the main components of shareholder wealth.
Will arthritis in a SI joint lead to a wheelchair existence?
Not necessarily, it depends on the severity of the condition,
What is the mineral resource that lead to the wealth of the kingdoms of west Africa?
The gold mined in the gorges and the spices.
