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Profit maximization is a primary goal of an business organization Do you agree?
Wiki User
∙ 9y ago
Yes, businesses exists to make money. If a business isn't profitable then it will go out of business and the investors will lose money.
Wiki User
∙ 9y ago
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Why is profit maximization a primary goal to an organisation?
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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 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.
Under what conditions might profit maximization not lead to stock price maximization?
Under what conditions might profit maximization not lead to stock price maximization?"
What are the examples of profit maximization and maximization of shareholders profit?
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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 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 is profit maximization a primary goal to an organisation?
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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.
Profit maximization of out with limited resources?
When profit maximization is performed with limited resources, ration formulation is used. If an organization is without limited resources, no rationing is needed.
The main goal of the business?
The main and primary goal of the business no matter what kind of nature it has, is only profit maximization. There may also be some secondary purposes such as well being of people or offering services to the society but the primary focus is PROFIT. http://www.aidandtrade.com/
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.
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.
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 irrelevance of profit to a business organization?
There is mention of relevance of profit in regard to a business organization, but no mention of irrelevance of profit in business.
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
The maximization of profit and the minimization of losses is the primary factor affecting the economic decision making of?
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