• Disadvantages Of Wealth Maximization

Strategic Consistency Whatever your goal, a clear focus on an overall strategic objective helps you create consistency in business decisions. If your company operates with the primary purpose of maximizing wealth, your decisions likely will relate to this objective consistently. In weighing purchases of supplies or inventory, for instance, you would select a provider and goods that offer you the highest revenue with the lowest investment cost. Any decision you make weighs both cost and revenue-generation factors first and foremost. Common Concerns While these advantages of maximizing wealth are hard to argue against, you have to recognize potential drawbacks and criticisms. If you get overly wrapped up in the financial stakes of your decisions, it can take away from any intangible or altruistic goals you have, such as bettering your community. Additionally, executing decisions that only weigh bottom line results can attract criticisms from community activists that expect you to contribute to the community, or from environmental watch groups that expect you to operate with green-friendly policies.

Disadvantages Of Wealth Maximization

There are many advantages of wealth maximization which include creating a security for the future and also living a quality lifestyle. There are also disadvantages which may include becoming. Sep 17, 2018  Advantages of profit maximization is company can increase their return by boosting up sales or by reducing the cost. Extra profit will add value to the company and give them some competitive advantages if company can produce their goods at cheaper. When a firm applies profit maximization, it is basically saying that its primary focus is on profits, and it will use its resources solely to get the biggest profits possible, regardless of the consequences or the risk involved. Profit maximization is a generally short-term concept.