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denpristay [2]
9 months ago
6

Profit maximization fails to provide an appropriate goal for financial managers because.

Business
1 answer:
snow_lady [41]9 months ago
8 0

Profit maximization fails to provide an appropriate goal for financial managers because it lacks a time dimension it ignores risk.

Profit maximization is the primary intention of any business, and consequently it's also an goal of monetary management. In monetary control, it represents the procedure or the technique by which income incomes consistent with percentage (EPS) is improved.

It enables in attaining the gadgets to maximize the business operation for earnings maximization. The ultimate goal of any commercial enterprise is to earn a large quantity of go back in terms of earnings. for this reason, this goal of financial control considers all the viable approaches to boom the profitability of the enterprise situation.

The wealth maximization approach aims at maximizing the wealth of the shareholders by growing EPS. Means that the wealth maximization technique is considered better than earnings maximization because wealth maximization technique makes a speciality of the lengthy-term boom and development of an corporation.

Learn more about Profit maximization here: brainly.com/question/13464288

#SPJ4

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A firm's financial statements are generally assumed to include its income statement and balance sheet. Which of the following pi
stellarik [79]

Answer: Liabilities

Explanation: The Balance sheet which is also known as the statement of financial position represent or shows an entity financial position at a single point in time. That is, it shows the Owners equity(capital), Liabilities and Assets of a firm for a financial period, usually a year.

On the other hand, the income statement shows and entity profitability over a period of time

5 0
3 years ago
On October 1, 2019, Priscilla purchased a business. Of the purchase price, $92,000 is allocated to a patent and $552,000 to good
Firdavs [7]

Answer:

$10,730

Explanation:

1. Patent: $92,000/15 years = $6,133

$6,133 × 3/12 = $1,533

2.Goodwill: $552,000/15 years= $36,800

$36,800 × 3/12 = $9,200

Total: $1,533 + $9,200= $10,733

Approximately $10,730

3 0
3 years ago
What was the reason for the financial crisis 2008?
tester [92]
The cause was the huge increase of mortgage rates and caused the economy to crash. also Obama. no just kidding only idiots ay that it was him because he hadn't been the president for a year yet so yeah.
7 0
3 years ago
Three partners are investing a total of 250,000 in a new cell phone repair shop.their investments are in the ratio of 3:5:12.how
Dahasolnce [82]
Let say A,B&C and the ratio is 3:5:12
3+5+12=20
250000divide by 20 = 12500
12500x3=37500
12500x5=62500
12500x12=150000
So A invested 37500
B invested 62500
C invested 150000
8 0
3 years ago
An increasing number of companies are considering their relationships with customers as financial assets. Such firms measure suc
sladkih [1.3K]

Answer:

CUSTOMER EQUITY.

Explanation:

Customer relationship management is an approach to maintain a company's interaction with current and potential customers. It mainly focuses on customer retention and driving sales growth.

Customer equity is a result of customer relationship management. It is the total of discounted lifetime value of all the firm's customers. In other words, the more loyal a customer, the more the customer equity.

The theory of Customer Equity can be defined as the value of the potential future revenue generated by a company’s customers in the entire lifetime of the firm.

Therefore, an increasing number of companies are considering their relationships with customers as financial assets. Such firms measure success by calculating the value of their CUSTOMER EQUITY.

3 0
3 years ago
Read 2 more answers
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