Asked by Aayushi Mehta on Sep 30, 2024
Verified
Profit maximization compels a decision maker to consider stakeholders other than the corporation and its shareholders.
Profit Maximization
The process by which a company adjusts its production and sales strategies to achieve the highest possible profit.
Stakeholders
Individuals or groups that have an interest or stake in the outcome of a project, decision, or organization, including customers, employees, investors, and suppliers.
Shareholders
Individuals or entities that own shares in a company and have potential voting rights and a claim on part of its assets and earnings.
- Identify the ethical implications of profit maximization and stakeholder theory in business.
Verified Answer
CC
Christian Cardenas1 day ago
Final Answer :
True
Explanation :
A profit maximizer will choose the alternative that produces the most long-run profits for the company,within the limits of the law.Profit maximization compels a decision maker to consider stakeholders other than the corporation and its shareholders.
Learning Objectives
- Identify the ethical implications of profit maximization and stakeholder theory in business.