Yng
Jun 26, 2009, 07:19 AM
How to lessen the gap between profit macimization and shareholder wealth maximization conflict?
ArcSine
Jun 26, 2009, 10:11 AM
Well, for starters, whenever you bump into somebody who's in the "profit max" camp, just loan 'em your Biz Finance 101 book, and we'll reduce the gap one misguided soul at a time. (Sorry, couldn't resist editorializing a bit :) )
OK, seriously, first tell what you think are the primary arguments for each side, and we'll go from there... and here's a bit of a hint: which side considers the absolute size of the profits, and which one takes into account the return-on-assets efficiency angle?