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Profit maximation remains the most important objective of business firms inspite of multiplicity of alternative businessdiscuss?
Wiki User
∙ 12y ago
Your question is not clear. If you mean by multiplicity of alternative business that the business firm has several companies operating under one "umbrella", it doesn't change the fact that every segment of the business has to turn an acceptable profit in order to survive. The only exception that comes to mind is to have one business that shows a paper loss as a way to offset other profit centers for tax purposes.
Wiki User
∙ 12y ago
Profit maximization is a central goal for business firms because it ensures their long-term sustainability, growth, and ability to generate value for shareholders. While there are other important objectives such as corporate social responsibility and customer satisfaction, profit maximization remains key as it serves as a signal of efficiency and effectiveness in resource allocation. Ultimately, without generating profits, businesses cannot survive and thrive in competitive markets.
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