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Is profit maximization an appropriate for a business?
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.
Advantages of profit maximization?
Profit maximization increase the graph of outputs.
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.
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.
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
Why profit maximization is not always the aim of a business firm?
Profit maximization can often mean sacrificing other things to obtain it which isn't desirable in alot of cases. An example is the environment or abusing human rights. As society has evolved theres been an increased demand for Corporate Social Responsibility (CSR) and this has led to alot of companies not directly aiming for profit maximization. Thats not to say that profit maximization and a CSR approach can't co-exist, companies such as general electric capitilize on this new demand for CSR to actually profit. Look up corporate social responsibility for more info, its a huge topic these days
Is profit maximization an appropriate for a business?
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.
Differentiate between value for money and profit maximization concept in corporate governance?
differentiate between value for money and profit maximization
What are the three views of social responsibility?
trustee management profit maximization social invovement
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 best describes the goal of the firm?
To maximize profit by spreading business activities vis a vis adhering to corporate social responsibility.
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.
What is meant by wealth maximization in a corporate finance environment How are corporate securities contingent claims on the firm's value?
Wealth maximization has been accepted by the finance managers, because it overcomes the limitations of profit maximization. Wealth maximization means maximizing the net wealth of the company's share holders. Wealth maximization is possible only when the company pursues policies that would increase the market value of shares of the company.
What are some arguments against social responsibility?
Violation of profit maximization Dilution pf economic productivity Cost to others Too much power arise by business Lack of skill by business leaders to solve social issue
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
