financial management

1. PROFIT MAXIMISATION
PROFIT MAXIMISATION
FEATURES OF PROFIT MAXIMISITION
ARGUMENTS IN FAVOUR OF PROFIT MAXIMISITION

2. PRPOFIT MAXIMISATION
Profit maximisation is a process business firms undergo to ensure the best output and price levels
are achieved in order to maximise its returns. Influential factors such as sale price, production cost
and output levels are adjusted by the firm as a way of realising its profit goals.

3. FEATURES OF PROFIT MAXIMISATION
• Profit Maximization is also known as cash per share maximization.
• The ultimate objective of any business is to earn a huge amount of return in terms of profit.
• Profit earning capacity is kind of a parameter for measuring the efficiency of a particular
business.

4. ARGUMENTS IN FAVOUR OF PROFIT
MAXIMISATION
MEASURE OF FINANCIAL STABILITY
OPTIMUM UTILISATION OF FUNDS
PROMOTES SOCIO-ECONOMIC WELFARE
RETAINED EARNINGS
INCRESES COMPETITIVENESS
DECISION-MAKING
DESIRE FOR CONTROLS