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In the short run, a company may increase its profits by continuing to sell a product, even though, it knows that the product is defective or otherwise unsuitable for a particular use. In the long run, though, because of lawsuits, large settlements, and bad publicity, such unethical conduct will cause profits to suffer. Thus, business ethics is consistent only with long-term profit maximization.
Quick Answer: No.
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What are the criticism of profit maximization?
In profit maximization, the ultimate aim of the business is profit. When profit is the main target, focus on other factors like investment, expansion, usage of the product, creating goodwill, ethics, etc., are lost or given minimum priority.
Why business and ethics do not mix?
Businesses operates in free markets.. Business is for profit and ethics is work for others. When you work for others than you can't generate profit. This argument supports the myth business and ethics do not mix.
What do you understand as a business ethics and why is necessary apply it?
business ethics means tactics applied for more profit we have to apply business ethics to earn more money
What is the meaning of business ethics?
There is no such thing as "Business ethics." It is a contradiction in terms. Ethics is a moral consideration of good and evil, and the only good and evil that a business comprehends is profit and loss.
The main aim of any business is to maximization profit it has nothing to social responsibilties do you agree with this statiment or not justify?
no
What are the criticism of profit maximization?
In profit maximization, the ultimate aim of the business is profit. When profit is the main target, focus on other factors like investment, expansion, usage of the product, creating goodwill, ethics, etc., are lost or given minimum priority.
Is Profit maximization the primary goal of any business enterprise?
Yes, profit maximization is the primary goal of a business. If a business doesn't maximize profits the Board of Directors can request that the CEO leave.
Is profit maximization an appropriate for a business?
Profit maximization is the ONLY appropriate goal for a business. Even under a so-called "social responsibility" regime, a business only engages in such schemes because it thinks it can increase profits by doing so.
What are the advantages and disadvantages of profit maximization?
The advantages of profit maximization is that creates a cash flow and investors become interested in companies that are maximizing their profits. The main disadvantage of it is that there are risks for business owners involved.An advantage of profit maximization is that it could create a huge increase in cash flow as long as the market remains good. However, a disadvantage is that if the market collapses during a period of profit maximization the business could lose everything.
Describe three reasons why profit maximization fails to be consistent with wealth maximization?
They concentrate too hard on making money. They forget about the customer. And they can become too greedy in the process.
Why stakeholders interested in the success of the business?
If the business is successful, then the stakeholders will benefit by increased pay, job security, job satisfaction, profit maximization and business ethics within the community. Say, for instance, a business may offer a pay increase if a employee performs to a certain standard.
Why business and ethics do not mix?
Businesses operates in free markets.. Business is for profit and ethics is work for others. When you work for others than you can't generate profit. This argument supports the myth business and ethics do not mix.
Under what conditions might profit maximization not lead to stock price maximization?
Under what conditions might profit maximization not lead to stock price maximization?"
What do you understand as a business ethics and why is necessary apply it?
business ethics means tactics applied for more profit we have to apply business ethics to earn more money
Are wealth maximization and profit maximization related?
Not necessarily
Advantages of profit maximization?
Profit maximization increase the graph of outputs.
What are the examples of profit maximization and maximization of shareholders profit?
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