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What is wrong if anything with saying the basic financial goal of a business is to maximize profits?
The argument against this being the sole purpose of a company is that it is not a true mission statement--it should also include customer service, integrity, value or benefit of the product and whatever it is offering for these profits. In the 1990's and even now, some investors (e.g.Icann, Bain) bought companies with the sole purpose of "monetizing" them by selling off unprofitable portions and reorganizing the rest. This made a lot of money for them and there is some discussion in the news and literature about whether this causes the rest of the company to go under or not, since the profits of selling usually do not go to the cash coffers of the remaining portion. In the last year or so, there have been instances of investors taking over the boards (e.g. JC Penney) with various success. So, yes, this saying may be fine for the investors, but as far as creating value for the workers and customers of the company, not so good.
What else can I help you with?
What are financial objectives of multinational companies?
to maximize profits for their owners.
The objective of Management is to maximize profits?
It is a true statement that the objective, or goal, of management is to maximize profits. Another term for profit would be financial gain.
how to get help for accounting small business online?
It is always best to go to financial aid centers that are able to help you choose the best financial decisions to maximize your profits. It is always best to hire some professional service to help you.
What is objective in business?
A business' objective is to make money. They are in business to make money for their stockholders. They sell products and services to maximize their profits.
How can revenue credit be utilized to maximize profits for a business?
Revenue credit can be used by a business to increase sales and attract more customers. By offering discounts, promotions, or loyalty programs, businesses can encourage customers to spend more and return for future purchases. This can help increase revenue and ultimately maximize profits for the business.
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.
How can I effectively invest in a business to maximize profits and growth potential?
To effectively invest in a business for maximum profits and growth potential, you should conduct thorough research on the company, its industry, and market trends. Diversify your investments to reduce risk, stay informed about economic conditions, and consider seeking advice from financial experts. Additionally, monitor your investments regularly and be prepared to adjust your strategy as needed.
What are the characteristics of business market?
Characteristics of the business market include, the fact that there are many buyers and takers. Another characteristic is the fact that managers will try to make decisions that maximize profits.
Which type of business earns huge profits?
realestate, stocks, anything in the technology field.
What is exploitation chiefly for financial gain is called?
Exploitation chiefly for financial gain is known as "capitalism" — a system where private individuals and corporations own the means of production and seek to maximize profits by exploiting labor and resources.
How can I effectively utilize investing as a business strategy to maximize profits and achieve long-term financial success?
To effectively utilize investing as a business strategy for maximum profits and long-term financial success, it is important to diversify your investments, conduct thorough research, stay informed about market trends, and seek professional advice when needed. Additionally, having a clear investment plan, setting realistic goals, and being patient for long-term growth are key factors in achieving success.
What is the capitalist's ultimate goal in terms of maximizing profits and expanding their wealth?
The capitalist's ultimate goal is to maximize profits and expand their wealth by increasing revenue, reducing costs, and growing their business through strategic investments and market expansion.
