Assignment of Financial Management Prepared By:- enquiry - single out between realise maximisation and wealthiness maximization? Answer- allow us first understand the translation of both the damage. benefit maximization:- lolly maximization essentially substance a process by which a club undergo toÂ formÂ the bestÂ outputÂ andÂ wrong levelsÂ inÂ orderÂ to maximize itsÂ return. Profit maximization is a well(p) intimacy for a company, but can be a bad thing forÂ consumersÂ if the companyÂ startsÂ to use cheaperÂ productsÂ or decides toÂ throw outÂ scathes wealth maximization:- riches maximization simply means maximization of shareholders wealth. It is combination of two terminology wealth and maximization. Wealth of a shareholder maximize when the mesh worth of a company maximizes.Â Â Wealth or assess of a backing is defined as the market bell of the capital invested by shareholders. Basis of differentiation| Profit maximisation| Wealth Maximi zation| Meaning| Profit maximization, as the pee-pee suggests that it is related to companys profits.| Wealth maximization, it means wealth of the shareholders of the company in the market i.e. the current market price of the capital invested by them.
| Approach| Profit maximization is basically a traditionalistic approach| Wealth maximization is a modern solar day approach; generally well-nigh of the company follow this approach.| measure of determining| It is determined at the end of the period (quarterly or annually).| It is determined by the dislodge in the stock price of the company over a period.| Value| Pr ofit maximization measures the shelter of a! n entity in terms of the currency profits that it makes. | Wealth maximization goal is the logical argument cheer of an entity expressed in terms of the market time value of its common stock | Time value of money| Profit maximization does not consider the time value of money. The profit made today and the profit made later on one year is treated to be the same. | It considers the time value of money| Question -...If you want to get a healthy essay, order it on our website: OrderCustomPaper.com
If you want to get a full essay, visit our page: write my paper