why might profit maximisation be considered inappropriate by a firms stakeholders other than shareholders
why might profit maximisation be considered inappropriate by a firms stakeholders other than shareholders
Answer
Profit maximization is often considered inappropriate by a firms stakeholders (like the government or the company's employees) other than shareholders because stakeholders have more of an embedded, and oftentimes less-financial interest in the company than shareholders, who can invest in a company without really caring much about what the company does.
Profit maximization usually involves risk, which can be riskier for the stakeholder than the shareholder.
Virtual Teaching Assistant: Colleen R.
Question Level: Basic
Karma: Free
Upload Date: 5/31/2017
This 28 words question was answered by Colleen R. on StudySoup on 5/31/2017. The question contains content related to Business Since its upload, it has received 108 views.