Reference no: EM132089447

Now we are in the real world where the market is competitive due to new inventions of technology and marketing strategy. From the reading i agreed that, "For many, the the view that the purpose of the corporation is to make a profits for the stockholders is beyond debt and is accepted as a matter of facts". Why the corporation changes its prices, changes the marketing strategy and also be selective in hiring the employee? Simply, we can say, for profit maximization. Corporation invest huge amount of budget in the field of marketing and advertising in the long run. Also, the corporation want to minimize their costs with good allocation of scare resource and wants to maximize their revenue by increasing their sales which means they wants profits for their existence and good reputation. Every family, societies and nation needs money to fulfill their basic needs. Family can upgrade their standards with good income of source, society and nation need funds for their development. Whereas tax is the greatest source of revenue to the nation. Corporation is the place where too may people are employed. This means corporation need profit to pay salaries to their employee and tax to the nation. In my home county, my father worked in the corporation which is in loss for more than 5 years. The corporation is not able to pay tax and salaries to their employee which results shut down of corporation. The shut down of corporation harms to many families, brings unemployment and economic crisis which is too bad for the nation. So, in my opinion corporation needs profits for its systematic regulations. Most of the funds are rising with the profits made by the individual and corporation. There are too many economically poor country which need funding for their societies and families. For example, too many poor people are getting the medicine and treatment from the funds raised by the Chinese corporation. They are helping our village by constructing the highways, providing the electricity and establishing the schools for the orphans and poor people. Today we can buy each and every thing due to development of market which is possible with huge number of production of goods and services. And huge number of goods and services are produce by the corporation and companies for the profit maximization. Corporation need profits for the further research to expand its business. The dividends received by the shareholders from the profit of corporation increase their stocks and market in the nation. Profit maximization is also the risk for the corporation. But, profit is required for the existence of the corporation. So, the purpose of the corporation and company is to maximize their profits.

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