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Maximizing Shareholder's wealth

Compare and contrast the goals of profit maximization and maximization's of shareholder wealth.

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Profit maximization stresses the efficient use of capital resources, but it is not specific(or ignore) with respect to the time frame over which the profits are to be measured.

In short- term executives may used different assets to sell-off and turn the cash to increase liquidity on corporate balance sheets and than could easily increase profits. But this short run profit ...

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Compare and contrast the goals of profit maximization and maximization's of shareholder wealth.

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