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Why is the goal of wealth maximization is superior than the goal of profit maximization. Also...

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Finance

Why is the goal of wealth maximization is superiorthan the goal of profit maximization. Also explain why profitmaximization is a short run goal and wealth maximization is longrun goal.
please explain in detail.

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4.2 Ratings (823 Votes)
Profit Maximization is the capability of the firm to produce maximum output with the limited input or it uses minimum input for producing stated output It is termed as foremost objective of the company It is recommended that the apparent motive of any business organisation is to earn a profit it is essential for the success survival and growth of the company Profit is a long term objective but it has a shortterm perspective ie one financial year Profit can be calculated by    See Answer
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