Tuesday, 21 August 2012

Financial Assignment Help - wealth maximisation and profit maximization

The objective of financial management is maximisation of economic welfare of its shareholders. Maximisation of economic welfare means maximisation of shareholders wealth. Shareholders wealth maximisation is reflected in the market value of the company shares. There are two types of the aim of financial management of the company that are profit maximisation and wealth maximisation. Finance Assignment Help clear the goal of the financial management which is attained when it maximises its value.

The cardinal rule of efficiency explains Profit maximisation concept. Its goal is to maximise the returns with the optimum output and low price levels. A company performance is evaluated in terms of profitability. Allocation of resources and investors perception of the company, performance can be traced to the goal of profit maximisation through online finance assignment help.

Wealth maximisation means maximising the net wealth of company shareholders. Wealth maximisation is possible only when the company shareholders. Wealth maximization is possible only when company pursues policies that would increase the marker values of shares of the company. This concept is better than profit maximisation. Online finance assignment help also clear that profit maximisation is based on accounting the profit and wealth maximisation is based on the concept of cash flow and considers time value of money..

When a company follows wealth maximization goal it achieves maximisation of market value of share .a company can practice wealth maximisation goal only when it produce quality goods at low cost. So that society gains because of societal welfare. This helps the consumers as it brings to te market the products and services that consumers needs.

Online finance assignment help to understand difference between wealth and profit maximisation concept. For complete solution   online finance assignment help is the best in current situation which is available on one click of your mouse. 

3 comments:

  1. You explained wealth & profit maximization very good but there are many difficulties comes in finance or different subject when we do homework. so online experts are good options for all.

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