At Westonci.ca, we provide reliable answers to your questions from a community of experts. Start exploring today! Connect with a community of experts ready to help you find accurate solutions to your questions quickly and efficiently. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

why might profit maximisation be considered inappropriate by a firms stakeholders other than shareholders

Sagot :

Profit maximization is often considered inappropriate by a firms stakeholders (like the government or the company's employees) other than shareholders because stakeholders have more of an embedded, and oftentimes less-financial interest in the company than shareholders, who can invest in a company without really caring much about what the company does. Profit maximization usually involves risk, which can be riskier for the stakeholder than the shareholder.