Regardless, here are a few differences between wealth maximisation and profit maximisation.
Profit maximisation is accomplished by raising the business's earning potential. Contrarily, wealth maximisation refers to using a company's resources to increase stock value for stakeholders and shareholders.
The overall thing of maximising profits does not include taking on risks and avoiding uncertainties. At the same time, Wealth Maximisation considers and acknowledges the necessity of evaluating all potential risks and uncertainties.
Any business's long-term objective is wealth maximisation. In comparison, profit maximisation is a short-term objective.
Maximising profits guarantees the company's growth and longevity. Wealth maximisation, in contrast, concentrates on a company's long-term rate of growth by growing its market share.
Profit maximisation ignores the temporal worth of money, but wealth maximising takes it into consideration. According to the time value of money theory, a specific quantity of funds is worth more than it should be in future. This statement is true because the only way to build money is through investments. Therefore, when an investment is put off, an opportunity is missed.
#fm #financialmanagement #profitmaximization
Support this channel by becoming a member:
/ @collegetutor
All important links at one place (Whatsapp Group Joining Links):
linktr.ee/collegetutor
For free Notes and Videos Install our App:
bit.ly/CT_app (Exclusive features only on App)
Join our Telegram Group: bit.ly/CT_telegram
Join our Discord Server / discord
For more help in your exams and studies Subscribe now...
bit.ly/collegeprotutor
Visit our website:
collegetutor.net
Buying something from Amazon? The same price for you, Little help for us.
Crazy Deals on Amazon: amzn.to/33OopAM
Our Recommendations (Affiliate Link):
Video Making (Cheap and Best):
Camera/Mobile Tripod Stand: amzn.to/3nPnQie
Gorilla Tripod/Mini Tripod: amzn.to/3nPnQie
Lavalier Microphone for Recording (Offer): amzn.to/3lBr8n6
Boya Omnidirectional Lavalier Microphone: amzn.to/3iNgxnu
AmazonBasics Whiteboard, Duster, Marker Combo: amzn.to/2GMhbod
Durable Whiteboard: amzn.to/3lEqwNN
Check our Facebook page:
/ collegeprotutor
Follow us on Instagram:
/ collegeprotutor
Follow us on LinkedIn:
/ college-tutor