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Q. Explain Profit Maximization Approach?
(i) Best Criterion on Decision-Making:- The goal of revenue maximization is regarded as the best criterion of decision-making as it offers a yardstick to judge the economic performance of the enterprises.
(ii) Proficient Allocation of Resources: - It leads to proficient allocation of scare resources as they tend to be diverted to those uses which in terms of profitability are the most desirable.
(iii) Optimum Utilization: - Optimum consumption of available resources is possible.
(iv) Utmost Social Welfare: - It make sure maximum social welfare in the form of timely payment to creditors, maximum dividend to shareholder, higher wages, better quality and lower prices, more employment opportunities to the society and maximization of capital to the owners.
Comment on the subsequent statement: “Since the U.S. imports more than it exports, it is essential for the U.S. to import capital from foreign countries to finance its current acco
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what are the arguments in favour of profit maximization?
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Return Enhancement can be explained using following heads: Use of a Valuation Model: An investor having access to a bond valuation model can bu
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