3. Profit maximization is not wealth maximization –
Discuss briefly by giving appropriate examples.
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Answer Posted / deepa poojari
In simple terms the goal of any firm should be the
maximization shareholders wealth as well as the
stakeholders of the firm and not only the profit.
Profit maximization has several limitations including;
The word profit is ambiguous It is not clear whether
profits should be maximized in the short term or long term.
The maximisation of the wealth is the benefited in the long
run.
| Is This Answer Correct ? | 12 Yes | 1 No |
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