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Why Is Profit Maximization Supposedly Not The Most Important Goal Of A Company. And business expansions for owners means a higher potential on generating income and for the society it would be able to have an increase in employment. 2 Profit Maximization.
Shareholder Theory And Its Limitations Chapter 6 Capitalism Corporations And The Social Contract from www.cambridge.org
Why Profit Shouldnt Be Your Top Goal. A company should not just focus on profit earning but should also pay attention to customer satisfaction. It just doesnt work over time.
Companies that make plenty of profit because they hold their customers in high regard.
Generally the profit maximization is held important goal for a company because of various reasons. Profit Maximization is the ability of the company to operate efficiently to produce maximum output with limited input or to produce the same output using much lesser input. There are three correct answers to this question which are 1. Essential for survival Any entity cannot spend more money than it takes in.
