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Maximisation of shareholder wealth & Maximisation of Profit

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Question:
Describe the "Maximisation of shareholder wealth" concept and contrast it with the notion of "Maximisation of Profit".

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The expert describes the "Maximisation of shareholder wealth" concept and contrast in with the notion of "Maximisation of profit".

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DEAR STUDENT,

Maximization of shareholders' wealth implies that enriching the shareholders. Maximizing shareholders' value implies that the management should take into account the interests of the shareholders in the business decisions and not merely maximizing profits. If the business purchases sub standard raw material and sells the sub standard products to the customers at the reduced price, ...

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