FOUND.OF FINANCIAL MANAGEMENT-ACCESS
17th Edition
ISBN: 9781260519969
Author: BLOCK
Publisher: MCG
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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.
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