Profit maximization ignores the risk associated with the stream of cash flow with the product. Also, profits for different types of stakeholders can not be maintained with profit maximization.
WHAT IS THE PROFIT MAXIMISATION?
Both profit maximization and wealth maximization have the objective of increasing the net worth.
Advantages: Competition > profit > innovation. Disadvantages: higher costs for consumers there are losers risk for an entrepreneur
1. Profit Maximisation is the main objective of a firm" Discuss this statement with the help of an example.
disadvantages you can go prison its bad and you shouldn't do it cheating innocent people out their money if caught u get fined ALOT advantages you get losts of money extra revenue means more profit
WHAT IS THE PROFIT MAXIMISATION?
Both profit maximization and wealth maximization have the objective of increasing the net worth.
Advantages: Competition > profit > innovation. Disadvantages: higher costs for consumers there are losers risk for an entrepreneur
1. Profit Maximisation is the main objective of a firm" Discuss this statement with the help of an example.
Profit maximization sales maximisation growth maximisation utility maximisation satisfying behavior long run survival welfare objectives
the difference between Profit maximisation and share price maximisation
The advantages are that you can get donations to fund your charity The disadvantages of a charity are that the details are exposed to the general public. The charity does not work to make a profit.
the advantages of reinvesting profits are :- -no interest rates the disadvantages of reinvesting profits are:- -only the amount of money in the business can be reinvested -dont get income from investment
Not sure what you're asking - a "Profit and Loss" is a slang name / jargon for an Income Statement.
There are a number of advantages and disadvantages to the fair trade system. Advantages include fair wages, a higher profit, and safer working conditions. Disadvantages of fair trade include the cost of certification and the favoring of co-ops over individuals.
It can cost Farmers money and can eat up all his profit. Also cutting hedges can take hours and it needs to be done by a professional hedge cutter
Some advantages of penetration pricing would be obtaining a large share of the market so that they dominate the market. Disadvantages would be not making a profit at all in the beginning stages.