Finance 340

Profit maximisation is when firms maximise their profits through sales and increasing the price of products. Profit maximisation occurs when total sale revenue is furthest above total cost which is when MR= MC. Firms are usually controlled by the managers, in order for managers to keep its position its must gain enough or maximise the firms’ profits, so it can satisfy the shareholders. However managers may want to take a different approach rather than maximising the firms’ profits. Managers may want to maximise managerial objectives such as maximising its sales rather than profits. However although they are taking a different approach, they still must gain enough profits to satisfy the firms’ shareholders in order to avoid losing their

The primary objective of the manager is to please the stockholder by maximizing stockholder wealth.

Therefore, the Lawrence Minority Business Council (LMBC) and the Lawrence Working Capital (LWC) was organized to help generate multiple small businesses and to help increase employments rate in

Note: General Note The Initial Measurement Section provides guidance on the criteria and amounts used to measure a particular item at the date of initial recognition.

c) What will be the required return on equity (rE) after the change in capital structure from part b?

company should be, which the answer is to make money. The book is about transforming

They went on to state that competition would not solve this dilemma. This lead to a re-evaluation of the goal of corporations, from merely maximizing revenues, to maximize the value of the firm, as it was determined in the stock market.

Under this perspective it is best for managers to provide a return of capital to shareholders while also meeting the demands of society in order to be socially responsibly and continue to exist within a society.

This paper is a book report on the novel entitled The Goal written by Eliyahu Goldratt and Jeff Cox. The 40-chapter book is actually a business book written in the form of a novel that makes it interesting to read unlike other business textbook. As a novel, the book is entertaining but at the same time, very informative for management or accounting students as well as for the real-life company managers and CEOs who wanted to apply different managerial practices. The paper summarizes the novel and makes analyses in relation to Operations Management.

To maximize shareholder value through a systematic, disciplined, reliable, ethical, and ongoing process of supply of goods or services.

I think that there is a misinterpretation of the Peter Senge quote used by Dyer. You stated, “If someone were to ask me what the purpose of the enterprise is, I would agree with Peterson Gay, “that the purpose of the enterprise is to maximize return on the shareholder’s investment.”” However, according to Dyer (2016), Senge believed that this concept was harmful to company’s (Dyer). Leaders do not allow room for growth, challenging the status quo, or accounting for their employees higher needs if organization think along the lines of profit and shareholders return first and foremost. Dyer (2016) goes on to quote Senge, “if people come to believe this (shareholders return first), then whatever ideas are articulated will, by definition

Among many other objectives of the management like “market share maximization, growth maximization and maximization of managerial return” ( Truett, Lila,J.,& Truet, Dale, B., 2004), the primary goal of each manager is to maximize profit of the company for short- and long-run period. Although there are many other concepts sustaining the idea of increasing shareholder’s wealth as the only manager’s role, the profit maximization turn to be the initial care of the management. Thus, the struggle to increase the profit is of great importance for the managers especially when it happens under the conditions of economic slowdown or even crisis.

The objective of an organization is the optimization of the total system and not the optimization of the individual subsystems. The total system consists of all constituents—customers, employees, suppliers, shareholders, the community, and the environment. A company's long-term objective is to create a win-win

In conclusion, the ultimate goal of a for-profit ShareAll company is to increase the number of players and their activity that will subsequently result in higher profit compared to the one, the company generated prior to gamifying its system.

Shareholders own companies and are therefore entitled to a return on their investments when the companies are performing well. It becomes the financial managers ' role to ensure that shareholders are receiving a maximum return on their investment. This project will concentrate on defining the different roles and objectives of financial managers in their attempt to maximize shareholder value. Furthermore, the viewpoint of stockholders will also be compared to those of financial managers with regards to maximization of shareholder value.