Risk, Corporate Finance

Risk means balancing between profitability and long-term growth. If a company looks at short-term goals, it may go in for profit maximization but it will find it difficult to sustain similar growth for a long period. The reason being that the steps leading to higher profits are also the high-risk measures. If the profitability measures go wrong, the company may get into major trouble in terms of survival. But risk is inevitable for shareholder value maximization. 

Posted Date: 7/26/2012 4:24:48 AM | Location : United States

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