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The objective of profit maximization is to increase a company's earnings to the highest possible level within a specific period. This goal drives businesses to optimize their operations, reduce costs, and enhance revenue through effective pricing and marketing strategies. Ultimately, maximizing profit not only benefits shareholders but also enables reinvestment into the company for growth and innovation. However, it’s important for firms to balance profit maximization with ethical considerations and long-term sustainability.
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Wealth mazimazation objective is superior to profit maximazation objective?
Wealth maximization is originally an effort to increase the wealth of employees, shareholders, and investors. In many implications it is equal to profit maximization. Whereas, if consumers are empowered by wealth they are willing to invest more in services. It can be a double edge sword however, neither objective can survive without the other.
Why profit maximization is not regarded as the core financial objective of firm?
Profit Maximization is a short term objective as all it aims for is to generate a higher revenue for the period.This objective is generally followed if the firm is highly leveraged and a higher profit is required to service it. Wealth Maximization is followed as it looks to increasing the market value of the firms share capital and thus leads to an overall development of the firm and its capacity.
What is profit seeking organization?
Some organisations,such as companies and partnerships, see their main objective as maximising the wealth of their owners. Such organisations are often referred to as 'profit - seeking'
Objective of Finance?
To put the corporate money into the best place which can generate long term- profit of the corporation.
Explain the rationale for selecting shareholders wealth maximizatio as the objective of the firm?
Explain the rationare for selecting shareholder wealth maximization as the objective of the firm.Include a consideration of profit maximization as an alternative goal
What is the goal of all economic decisions in a market economy?
benifit maximazation
Wealth mazimazation objective is superior to profit maximazation objective?
Wealth maximization is originally an effort to increase the wealth of employees, shareholders, and investors. In many implications it is equal to profit maximization. Whereas, if consumers are empowered by wealth they are willing to invest more in services. It can be a double edge sword however, neither objective can survive without the other.
What is the objective of dabur?
to earn the profit
What is the goal of all economic decisons in a market economy?
how old are you, 4! you can answer it! uh. no. that's not the answer. its benefit maximazation.
What is maximazation of shareholders wealth and profit?
The maximization of a shareholder's profit is at a point where the value of share is maximum and dividend on the share paid by the company is also very high but only few successful companies give such profit maximization to their shareholders and the listings of such companies can be found out on activetrader-links.com for investment purposes.
Can profit be regarded as the sole objective of business?
nop!
What are the mean objective of computer companies?
To make a profit.
Why Profit Maximisation is the main objective of a firm Discuss this statement with the help of an example?
1. Profit Maximisation is the main objective of a firm" Discuss this statement with the help of an example.
What are Aim and objective of JD sport?
is to make profit best answer in the world
What is the Organizational objective of inventory system?
Organizational objective is predetermined, which activities are aimed. Description of organizational objective is general and qualitative. For examples: To earn a profit of 24% in 2011.
Why Profit maximization can never be the objective of a firm?
Profit maximization IS an objective of a firm, but its not the ONLY objective. A firm will have different long term and short term goals which will vary depending on the current business cycle. If you need a more specific answer, please ask a more specific question. - Stavka
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
