Question

firms name that objective value maximization not profit maximization​

Answer 1

Answer:

Value Maximization Objective: The goal of the firm is to maximize the present wealth of the owners i.e., equity shareholders in a company. A company's equity shares are actively traded in the stock markets, the wealth of the equity shareholders is represented in the market value of the equity shares.

It should be clear that profit maximization is a strictly short-term approach to managing a business, which can be damaging over the long term. On the other hand, Wealth maximization, which focuses attention on the long term, increases the value of the business and eventually pays off better.