Explain the significant feature of the wealth maximisation, Financial Management

Explain the significant feature of the wealth maximisation

The significant feature of the wealth maximisation criterion is that it considers is that it considers both the quality and quantity dimensions of benefit. At the same instance, it also incorporates the time value of money. Operational implication of the timing dimensions and uncertainty of the benefits emanating from a financial decision is that adjustment must be made in cash flow pattern, firstly, to incorporate risk and secondly, to make an allowance for differences in the timing of benefits. Value of a course of action should be viewed in teams of its worth to those providing the resources essential for its undertaking.

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