The difference between maximization of value of the corporation and .pdf
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Apr 08, 2023
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The difference between maximization of value of the corporation and profit maximization and
return to the shareholder and maximise their wealth is the difference of objectives of living one
and non-living legal entity.
The firms objective is not only the maximisation of the wealth or return to the S...
The difference between maximization of value of the corporation and profit maximization and
return to the shareholder and maximise their wealth is the difference of objectives of living one
and non-living legal entity.
The firms objective is not only the maximisation of the wealth or return to the Shareholders but
creating values in the product is produced, development of the society in which it operates and
growth of the persons attached to it like employees, suppliers and customers. On the other hand,
it is the Shareholders whose objective to invest in the corporation is mainly to earn return on
their investment. The shareholders wants the corporation to earns more and more profits for them
every quater. The value of the corporation can be raised by only when the general society would
recognises the company and its products and services. The corporation concentrates on the
growth and development whereas the Shareholders pay attention to the return or profits.
Solution
The difference between maximization of value of the corporation and profit maximization and
return to the shareholder and maximise their wealth is the difference of objectives of living one
and non-living legal entity.
The firms objective is not only the maximisation of the wealth or return to the Shareholders but
creating values in the product is produced, development of the society in which it operates and
growth of the persons attached to it like employees, suppliers and customers. On the other hand,
it is the Shareholders whose objective to invest in the corporation is mainly to earn return on
their investment. The shareholders wants the corporation to earns more and more profits for them
every quater. The value of the corporation can be raised by only when the general society would
recognises the company and its products and services. The corporation concentrates on the
growth and development whereas the Shareholders pay attention to the return or profits..
Size: 24.16 KB
Language: en
Added: Apr 08, 2023
Slides: 1 pages
Slide Content
The difference between maximization of value of the corporation and profit maximization and
return to the shareholder and maximise their wealth is the difference of objectives of living one
and non-living legal entity.
The firms objective is not only the maximisation of the wealth or return to the Shareholders but
creating values in the product is produced, development of the society in which it operates and
growth of the persons attached to it like employees, suppliers and customers. On the other hand,
it is the Shareholders whose objective to invest in the corporation is mainly to earn return on
their investment. The shareholders wants the corporation to earns more and more profits for them
every quater. The value of the corporation can be raised by only when the general society would
recognises the company and its products and services. The corporation concentrates on the
growth and development whereas the Shareholders pay attention to the return or profits.
Solution
The difference between maximization of value of the corporation and profit maximization and
return to the shareholder and maximise their wealth is the difference of objectives of living one
and non-living legal entity.
The firms objective is not only the maximisation of the wealth or return to the Shareholders but
creating values in the product is produced, development of the society in which it operates and
growth of the persons attached to it like employees, suppliers and customers. On the other hand,
it is the Shareholders whose objective to invest in the corporation is mainly to earn return on
their investment. The shareholders wants the corporation to earns more and more profits for them
every quater. The value of the corporation can be raised by only when the general society would
recognises the company and its products and services. The corporation concentrates on the
growth and development whereas the Shareholders pay attention to the return or profits.