Profit Maximization vs Wealth maximization explained: How, what why: Principles of Finance

In this video, we delve into the important concepts of profit maximization and wealth maximization in the world of financial management. We explore the differences between these two approaches to business, including their benefits and drawbacks. While profit maximization focuses solely on generating profits for shareholders, wealth maximization takes a more holistic approach that seeks to create long-term sustainable value for all stakeholders, including employees, customers, and the wider community. We also discuss the impact of these approaches on financial management and explore the ways in which companies can balance the pursuit of profits with the creation of long-term sustainable value. Join us for an insightful look into the world of financial management, and learn how profit maximization and wealth maximization can impact the success of your business.