Loose Leaf for Foundations of Financial Management Format: Loose-leaf
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
Question
Book Icon
Chapter 1, Problem 9DQ
Summary Introduction

To explain: The reason that profit maximization inappropriate as well as the meaning of wealth maximization.

Introduction:

Profit maximization:

It refers to a situation in which the firm wants to attain a certain level of output with a given level of input that may lead to the maximum level of profits.

Wealth maximization:

It is a concept that focuses on the overall development of the business and not just increasing the level of profit.

Blurred answer
Students have asked these similar questions
Help
Why is it that the goal of financial management is maximization of shareholders’ wealth rather than maximization of profit?
Does profit maximization always lead to shareholder’s maximization?
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Text book image
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
Text book image
Financial Management: Theory & Practice
Finance
ISBN:9781337909730
Author:Brigham
Publisher:Cengage