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Profit maximization is the ONLY appropriate goal for a business. Even under a so-called "social responsibility" regime, a business only engages in such schemes because it thinks it can increase profits by doing so.
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Short term profit maximisation is not appropriate objective for a business?
Because business take the long term aspects of the business and for that wealth maximization is more important than anything else.
Advantages of profit maximization?
Profit maximization increase the graph of outputs.
Why is profit maximization not an appropriate goal of the firm?
A firm cannot survive with mere profit maximization, but must increase long-term security through investment and meeting shareholder expectations. This will increase their productive capacity for the furture as well as encourage the risky capital investment of the shareholders.
Types of activities performed by business organization?
There a many types of activities performed by business organizations. Some of these activities are sales and marketing's, profit sharing, profit maximization, operations, finance, merchandising, and manufacturing.
What is a business organization?
a business organization is a group or a unit of people working together with a commen objective of profit maximization.but profit maximization is not the only objective..they also satisfy human needs and wants by producing goods and services
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
Which is more comprehensive objective profit maximization or shareholder wealth maximization?
If the company is public listed (trades in the stock market) their aim is shareholder wealth maximization whereas for a privately owned firm a profit maximization objective is appropriate.
Short term profit maximisation is not appropriate objective for a business?
Because business take the long term aspects of the business and for that wealth maximization is more important than anything else.
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 advantages and disadvantages of profit maximization?
The advantages of profit maximization is that creates a cash flow and investors become interested in companies that are maximizing their profits. The main disadvantage of it is that there are risks for business owners involved.An advantage of profit maximization is that it could create a huge increase in cash flow as long as the market remains good. However, a disadvantage is that if the market collapses during a period of profit maximization the business could lose everything.
What are the criticism of profit maximization?
In profit maximization, the ultimate aim of the business is profit. When profit is the main target, focus on other factors like investment, expansion, usage of the product, creating goodwill, ethics, etc., are lost or given minimum priority.
Under what conditions might profit maximization not lead to stock price maximization?
Under what conditions might profit maximization not lead to stock price maximization?"
Are wealth maximization and profit maximization related?
Not necessarily
Advantages of profit maximization?
Profit maximization increase the graph of outputs.
What are the examples of profit maximization and maximization of shareholders profit?
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Is profit maximization is good or bad for society?
Profit maximization can be both good or bad. Done correctly, profit maximization helps the company provide great products and services for customers.
Sales maximization vs profit maximization?
sales maximization technique is generally used in scale industries where base of the expenses is largelly fixed and where variable costs are limited. on the other hand profit maximization technique are used by variety of industries. total output is higher in sales maximization as compared to profit maximization
