Business Studies, asked by Rishabhu6554, 1 year ago

Advantages and disadvantages of profit maximization and wealth maximization

Answers

Answered by Anonymous
2

When focusing on maximizing profit, you may find yourself having to make choices that run counter to your values. You may earn extra money in the short term if you cut corners and use lower quality materials, but you'll likely create a lower quality product. Aside from the financial issue of losing customers when your substandard products don't meet their needs, you'll also end up taking less pride in your offerings and compromising your values if you've built your business on quality and integrity.

Maximizing profit can also be achieved by making employees work harder without paying them extra, or using materials that are harmful for the environment, such as nonrecyclable packaging. Of course you can put the extra money you earn towards doing good, such as donating to charity or investing in clean technologies. But it's simpler and more straightforward to avoid doing harm in the first place, even if that means earning less profit

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