Determine the objectives of profit maximisation, Financial Management

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Determine the objectives of Profit maximisation

Profit maximisation remains one of the key objectives for the managers of the companysince many managers' compensations are linked to the profits that company isgenerating.  Owners need to be aware of these goals and comprehend that it is the long-term viability of their companies that add value to them and not short-term profitability.

Consequently, long-term survival of the company must not be sacrificed for the short-term benefits.

 


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