"The stated objectives of commercial firms are often taken to be profit maximisation and shareholder wealth maximisation. Briefly comment on the extent to which this objective is realistic and how economics can be useful in assisting actual corporate objectives."

The Intended Learning Outcomes of the Assignment are: Examine the concept of profits and its role in guiding decisions Assess the profit maximisation model Evaluate the shareholder wealth maximisation model. Words-500 minimum.

Assignment Guide To complete the assignment, you will need to carefully explain the role of profits and the role it plays in guiding decisions in an economy. The central focus of the assignment, and the part that should be allocated the majority of the word allocation, is the objective of the firm. This will require a concise explanation of the profit maximisation and shareholder wealth maximisation models of the firm, and to consider why as an overall objective of the firm, the objective is realistic, and how economics can be useful given varying corporate interests and constraints. A good answer should express your own view and provide a reasoned justification for the position adopted and credit will be given for evidence of relevant reading, wider discussion and engagement with the question. I expect formal and rigorous answers, which means that you should provide a sound discussion of the relevant points and analysis where required. Remember to give the explanation in your own words instead of copying them from the journal article/textbook. Please ensure that your assignment is properly referenced. Avoid the temptation of presenting the discussion under a separate heading. I expect to see coherent and logical communication of ideas and economic and financial concepts with linkages between the central points of the question. With references to APA 7th edition.