How to lessen the gap between profit macimization and shareholder wealth maximization conflict?
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How to lessen the gap between profit macimization and shareholder wealth maximization conflict?
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?
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