Profit maximization vsealth maximization in financial management of an organization?

Answer 1

Profit maximization is also about increasing the EPS (earning per share) of the shareholders and to maximise the net present worth. Main objective of co is profit maximization

EPS: net profit/ no of shares outstanding.

Wealth maximization is anything having value. Anything which can be expressed in money value or economic value which is considered as wealth. Baisc objective of a co is wealth maximization.

How to increase the wealth:

By producing a quality product at a competitive rate.

By giving product at reasonable price.

Good after sales service.

this all things leads to increase in co's wealth.