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What are the basic differences between profit maximization and wealth maximization ?

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Question added by Mohammad Mamun , Officer , United Finance Limited
Date Posted: 2014/03/21
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by Deleted user

Profit maximization is where management sole intent is to maximize the profit by ignoring risk , the more the risk taken the higher will be profit , on the other hand Wealth Maximization is where market value of share is of higher importance and owners share capital  value is considered

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