The reduced sales of Martha Stewart branded goods at K-Mart after she was accused of insider trading is an example of the strength of the profit maximization theory.

Profit Maximization Theory

The concept that businesses operate with the primary goal of increasing profits to the highest achievable level given their resources.

Martha Stewart

Martha Stewart is an American retail businesswoman, writer, and television personality, known for her lifestyle brand and media ventures, which focus on home improvement, cooking, and decorating.

Insider Trading

The trading of a public company's stock or other securities by individuals with access to non-public, material information about the company.