Question

Merit and demerit of wealth maximization​

Answer 1

Answer:

Advantages of wealth maximization:

Wealth maximization does not depend on profits. ... Wealth maximization is superior to profit maximization. 4. While giving discounts, it concentrates the risk factor.

Answer 2

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Disadvantages of Profit Maximization/Attack on Profit Maximization:

■Ambiguity in the Concept of Profit

■Multiplicity of Interests in a Joint Stock Company

■No Compulsion of Competition for a Monopolist

■Separation of Ownership from Control

■The Principle of Decreasing Power

■Stress on Efficiency, not Profit