Why is profit maximization not the most realistic goal for a company?

1 Answer
yuli s.
Mar 2, 2018

Because profit has many drawbacks

Explanation:

First, profit can be defined in a number of different ways. (operational, net, gross, etc)
Second, accounting profits do not exactly equal cash flows.
Third, profit maximization does not account for timing and ignores risk associated with cash flows.

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