Learn The Primary Objective Of A For Profit Firm Is To - Updated
Get the primary objective of a for profit firm is to. Profit Maximization Objective 2. 13Profit earning is regarded as a main objective of every business unit. 19Profit Maximization - is always used as a goal of the firm in microeconomics. Read also firm and the primary objective of a for profit firm is to The primary goal is to maximize the wealth of the firms owners-the stockholders.
They usually serve a public purpose such as enriching the lives of people in the. It means the classical and neo-classical economists regarded profit maximization is the most important and primary objective of the firms.
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And this objective is also compared with the profit maximization objective of the corporation and almost all the authors believe that Wealth maximization is superior objective than Profit Maximization.
However the business should not have the objective of maximization of profit because it leads to exploitation of the consumers. Focus on short term goal to be achieved within a year. According to them profit is the core concern of the business firm and it is necessary for the existence and survival of the firms. Profit maximization- The main objective of firms are profit maximization. A major advantage of using the maximization of shareholder wealth as the primary goal of the firm is that this goal considers the timing and the risk of the expected benefits to be received the investors consumption utility the value of closely held partnerships. In practice firms have been found to be pursuing objective other than profit maximisation.
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