![]() It aims at increasing the net worth of shareholders by raising their per-unit profit through proper management of their funds. According to financial management, profit maximization is the approach or process which increases the profit or Earnings per Share (EPS) of the business.In maximizing profits, input-output relationship is crucial, either input is minimized to achieve a given amount of profit or the output is maximized with a .Profit maximization is meant to be achieved in the short-run whereas wealth maximization is meant to be achieved in the long run. ![]() It reduces the conflict of interest among the stakeholders of a firm. Value maximization goal as a financial management decision criterion is considered a superior goal to profit maximization goal because: It is a clear goal.
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