Need help with answering about profit maximization

Aug 19th, 2015
Anonymous
Category:
Accounting
Price: $5 USD

Question description

Why is profit maximization, by itself, an inappropriate goal? 

What is meant by the goal of maximization of shareholder wealth? What does it mean to say that managers should maximize shareholder wealth “subject to ethical constraints”? What ethical considerations might enter into decisions that result in cash flow and stock price effects that are less than they might otherwise have been?

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