Describe the profit maximisation concept

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Reference no: EM131060425

For each question, illustrate with an appropriate example in your answer.

a. Describe the ‘profit maximisation’ concept and discuss why a finance manager who focuses on this approach will not likely to achieve the firm’s fundamental financial objective.

b. Explain how the concept of risk aversion may relate to investment decision making by corporate managers.

Reference no: EM131060425

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