What do you mean by profit maximisation and wealth maximisation?
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Profit Maximization means to maximise the profits of the business. According to this, business should prefer only those things which increases the profits of the business and minimizes the risks. This is the main objective of the any financial management. It also plays important role in economy.
Wealth maximization refers to increase the wealth of the business. In other words business should increase per share value of the shareholders so that wealth will be maximise. It also the one of the main objective of financial management. It helps in achieving many other goals of the financial management. It also helps in future growth of business, helps in performance evaluation etc..
Wealth maximization refers to increase the wealth of the business. In other words business should increase per share value of the shareholders so that wealth will be maximise. It also the one of the main objective of financial management. It helps in achieving many other goals of the financial management. It also helps in future growth of business, helps in performance evaluation etc..
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