Wealth maximization is a proper goal because it is a long-term objective that allows a company to focus on increasing its stock value which increases shareholders’ wealth making the company more valuable in the market. Profit maximization is an inappropriate goal because it only focuses on short-term profit-making rather than increasing the value and competitiveness of a business. This means that businesses should focus on wealth maximization as opposed to profit maximization.
Explain why wealth maximization is more desirable than profit maximization as a goal for any company.
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Academic.Tips. (2023) 'Explain why wealth maximization is more desirable than profit maximization as a goal for any company'. 19 January.
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Academic.Tips. (2023, January 19). Explain why wealth maximization is more desirable than profit maximization as a goal for any company. https://academic.tips/question/explain-why-wealth-maximization-is-more-desirable-than-profit-maximization-as-a-goal-for-any-company-2/
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Academic.Tips. 2023. "Explain why wealth maximization is more desirable than profit maximization as a goal for any company." January 19, 2023. https://academic.tips/question/explain-why-wealth-maximization-is-more-desirable-than-profit-maximization-as-a-goal-for-any-company-2/.
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Academic.Tips. "Explain why wealth maximization is more desirable than profit maximization as a goal for any company." January 19, 2023. https://academic.tips/question/explain-why-wealth-maximization-is-more-desirable-than-profit-maximization-as-a-goal-for-any-company-2/.
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"Explain why wealth maximization is more desirable than profit maximization as a goal for any company." Academic.Tips, 19 Jan. 2023, academic.tips/question/explain-why-wealth-maximization-is-more-desirable-than-profit-maximization-as-a-goal-for-any-company-2/.
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