Compare and contrast maximizing profit and maximizing shareholder wealth. List comparisons and list contrasts for discussion. Use examples from financial websites which indicate ways companies are maximizing profit and/or shareholder wealth.© BrainMass Inc. brainmass.com March 4, 2021, 8:56 pm ad1c9bdddf
For profit maximization, companies need to do the following two things:
(1) Maximize revenue: such as increase the product quality and be able to charge a higher price, enter unexplored markers etc.
(2) Minimize expenses: decrease the costs of conducting business by eliminating unnecessary expenses. Such as laying off excess employees etc.
The results of profit maximization are directly reflected in the net income item on the company's income statement.
For maximizing ...
This solution compares and contrasts maximizing profit and shareholder wealth.