Question

value maximization is preferred objective of financial management than profit maximization​

Answer 1

Answer:

Value maximization is preferred objective of financial management over the objective of profit maximization, because when there is the maximization of profit then either it shall increase the commodities price, or make the quality get degraded.

Explanation:

If any company degrades its quality of products, then gradually it will start losing the customer base and ultimately it will cause its own destruction. The reason is that customers are the one who makes a business rich and poor. If the values are good in business, then it will get huge oppurtunities for earning profit.