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Arguments on Profit Maximization

Arguments on Profit Maximization

Arguments on Profit Maximization

Favourable Arguments for Profit Maximization

The following important points are in support of the profit maximization objectives of the business concern:

(i) Main aim is earning profit.

(ii) Profit is the parameter of the business operation.

(iii) Profit reduces risk of the business concern.

(iv) Profit is the main source of finance.

(v) Profitability meets the social needs also.

Unfavourable Arguments for Profit Maximization

The following important points are against the objectives of profit maximization:

(i) Profit maximization leads to exploiting workers and consumers.

(ii) Profit maximization creates immoral practices such as corrupt practice, unfair

trade practice, etc.

(iii) Profit maximization objectives leads to inequalities among the sake holders such

as customers, suppliers, public shareholders, etc.

Arguments on Profit Maximization

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