The wealth maximization increases the net value that is current. The maximization sale involves obtaining the highest amount of sales without incurring any loses. Each, especially when used together, can be the better operating goal depending on the situation in which they are needed to be used.
The goal of maximization of shareholder wealth is meant by; first, in most cases
How does the goal of maximization of shareholder wealth deal with uncertainty and timing?
How does the goal of maximization of shareholder wealth deal with uncertainty and timing?
Outline how an agency problem can interfere with the implementation of the goal of shareholder wealth of maximization
profit maximization &wealth maximization of shareholders.
it is operating cost
The goal of maximization of shareholder wealth is meant by; first, in most cases
How does the goal of maximization of shareholder wealth deal with uncertainty and timing?
How does the goal of maximization of shareholder wealth deal with uncertainty and timing?
Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization
Outline how an agency problem can interfere with the implementation of the goal of shareholder wealth of maximization
profit maximization &wealth maximization of shareholders.
The concept of maximizing share holder wealth is a goal that encompasses everything that is expected out of a management. when would share holder wealth increase? Either by dividends or by increase in value of the shares. When can a company declare dividends or when would a company's share value increase? when its profits increase, its net sales and revenue increase etc. so indirectly by trying to achieve one goal we are attaining some other goals that are very important for a company's existence.
Explain the rationare for selecting shareholder wealth maximization as the objective of the firm.Include a consideration of profit maximization as an alternative goal
The agency problem is a result of the separation between the decision makers and the owners of the firm. As a result managers may make decisions that are not in line with the goal of maximization of shareholder wealth.
why? isn't it to adjust it downwards to max. shareholders wealth?
Shareholder wealth (more commonly referred to as shareholder value) is talking about the value of the company generally expressed in the value of the stock. Profit maximization refers to how much dollar profit the company makes.