What are the main flaws of the profit maximisation criterion, Financial Management

Assignment Help:

What are the main flaws of the profit maximisation criterion

The main technical flaws of this criterion are

i) ambiguity,

ii) quality of benefits and

iii) timing of benefits.

Related Discussions:- What are the main flaws of the profit maximisation criterion

Incremental cost, Incremental Cost The measured change in a firm's cos...

Incremental Cost The measured change in a firm's cost of production due to an additional activity pursued by the firm. Incremental costs can be measured by the cost difference

Illustrate report on cash flow budget, Q. Illustrate report on cash flow bu...

Q. Illustrate report on cash flow budget? The cash flows The principal reason why certain statistics were not included in the cash flows is that they are incremental cash

What do you mean by public deposits, Q. What do you mean by Public deposits...

Q. What do you mean by Public deposits? Public deposits are the fixed deposited by the business enterprises directly from the company. This source of the raising the short term

Foreign exchange market, 'Foreign Exchange Market': Definition of 'For...

'Foreign Exchange Market': Definition of 'Foreign Exchange Market' The markets, in which participants are able to sell, buy exchange and speculate on currencies. Foreign e

Describe the main elements of working capital management, Question: (a)...

Question: (a) Describe the main elements of Working capital management? (b) Belle Rive Ltd Belle Rive Ltd has an annual turnover of Rs 60 million of which 80% is on cr

Describes the gordons dividend model, Q. Describes the Gordons dividend mod...

Q. Describes the Gordons dividend model? Gordon's Model: - Gordon's model is one more theory which contends that dividend policy is relevant for the value of the firm. Alternat

Optimal portfolio selection, Optimal Portfolio Selection: The next step...

Optimal Portfolio Selection: The next step involves selecting the optimal portfolio. The strategic asset allocation will have overriding importance in pension fund management.

Cash flow statement, Given below are the cash flows of a project. Find out ...

Given below are the cash flows of a project. Find out the net present value of the project. Cost of capital is 18% and initial investment is Rs. 2,00,000. Year Cash Flows (lakhs)

Capital budegting, SCL Limited a highly profitable company is engaged in th...

SCL Limited a highly profitable company is engaged in the manufacture of power intensive products.

Financial ratios, How can we interpret financial ratios??

How can we interpret financial ratios??

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages