Profit maxmisation aim of business may lead to social equality
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Several objectives have been proffered for decision making in a business concern, the prominent ones being Profit Maximization, Shareholders Wealth Maximization, Societal Value Maximization and Personal Reward Maximization. Among all the objectives, profit maximization holds a central position so far as their application is concerned. Small and medium enterprises particularly use this criterion for making decisions owing to its simple conceptual underpinnings and use and also due to the fact that profit is important for the sustainability of any business. Profit is also considered as a measurement standard for the viability of a business model. The operating logic behind this approach is efficiency. Despite the prominence of this criterion, it suffers from limitations like vagueness of the term, 'Profit', ignorance of quality, timing and risk of benefits. The article provides a fundamental platform for a future in depth analysis of the said objective in contemporary business context.