Question

"wealth management objective is the more superior one in compare to profit maximization objective". Critically and fully examine this statement.​

Answer 1

Explanation:

हैल्थ managment ऑब्जेक्ट् इस थे more superior one in compare to profit maximization objective, critically and fully examine this statement

Answer 2

Concept Introduction:

Business has financial objectives which they strive to achieve and make the organization prosper in the long run.

Given Information:

It is given that business has two objectives:

• Profit Maximization

• Wealth Maximization

To Find:

We have to find which objective is better and superior to the other one. It could be either profit maximization or wealth maximization

Solution:

Financial management and wealth management are tools of financial advising .If to argue that the fundamental goal of a firm is to make profits, then the goal of financial management is profit maximization. However, profit maximization cannot be a company's exclusive goal.

Because of the complications that might occur when profit is given undue prominence, wealth maximization is preferable to profit maximization. This will help in stability of returns.