1.2 Profit maximization would have to be from a long-run standpoint to be meaningful at all. However,...

Question:

1.2 Profit maximization would have to be from a long-run standpoint to be meaningful at all. However, it would still be deficient in not considering the risk of alternative income streams. Wealth maximization is a better goal because it takes into account both the stream of income, or cash flow, over a period of years and the appropriate capitalization factor which reflects the degree of risk involved.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: