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Profit maximization - Objectives of Business Entity
Conventionally, this was considered to be the main goal of the firm. Profit maximization refers to getting the highest possible profits throughout the year. This would be achieved via either increasing sales revenue or via reducing expenses. Notice as:
Profit = Revenue - Expenses
The sales revenue can be increased through either volume selling price or the increasing the sales. However it should be differentiated, such maximizing sales revenue may on the same time effect to increasing the firm's expenses. However the pricing mechanism will, assist the firm to determine such goods and services to give so as to maximize profits of the firm.
The profit maximization goal has been criticized since of the following like:
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Example of Stock Market Index The following six companies constitute the index of democratic republic of Kusadikika. Company A B
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A bondholder buys a bond maturing in two years for Rs. 120 and earns Rs.15 per annum as interest. His YTM is ______ %.
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objectives
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The following is the existing capital structure of Company XYZ Ltd. Ordinary shares at Shs.10 par 1,000,000 Retained 800,000 12% preference shares Shs.10 par 400,000 16% loan Shs.1
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