Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Limitation of profit maximisation -Quality of Benefits
Probably the most vital technical limitation of profit maximisation as an operational objective, is that it ignores quality aspect of benefits associated with a financial course of action. Term quality here refers to the degree of certainty with which benefits can be expected. As a rule, the more certain the expected return, the higher is the quality of benefits. On the other hand, the more uncertain/ fluctuating is the expected benefits, the lower is the quality of benefits.
Anfluctuating and uncertain return implies risk to investors. It can be safely presumed that investors are risk-averters that is they want to avoid or at least minimise risk. They can, so, be reasonably expected to have a preference for a return which is more certain in the sense that it has smaller variance over the years. Problem of uncertainty renders profit maximisation unsuitable as an operational criterion for financial management as it considers only size of benefits and gives no weight to degree of uncertainty of future benefits.
How do mergers affect consumers? A: The impacts mergers have on consumers vary widely. There may be a few inconvenience and anxiety when a customer's bank or branch is obtained
Accounting : Many people believe financial management only relates to bookkeeping and the establishment of accounting reports which reflect those transactions in the books. Whi
a The Monetary Approach to the ER. All else equal, an increase in the interest rate in Canada is associated, in the long run, with higher prices in Canada and an appreciated exchan
An asset needed by the ABC Corp. can be purchased for $100,000. Maintenance and other ownership expenses will total $20,000 each year for the asset's expected 10-year life. On the
How can we calculate ration analysis in financial management?? Determine the ration analysis? Need assignemt help on this topic
The data on sales performance in LS Company has shown a important downward trend over the last year. The Marketing and Sales Department is blaming the Finance Department for the po
Taxonomy of financial intermediaries We start by looking at the USA, the largest economy and financial system in the world. Subsequently we will turn to other countries. In the
You have the following information about rates in London for Eurocurrency loans of one-year duration, the exchange rate between the USD and euros, the currency in which you want fi
discuss the applicability of operation cycle in avegetable growing business
Why is the coefficient of variation often a better risk measure when comparing different projects than the standard deviation? Whenever we wish to compare the risk of investmen
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd