Table of Contents

Contents Page
Chapter 1 : Introduction 1-2
1.1 Objective of the study 1
1.2 Methodology 2
1.3 Limitation 2

Chapter 2 : Profit maximization Vs. wealth 3-9

Maximization
2.1 Maximize profit? 3
2.1.1 Favorable and unfavorable argument for profit 3-4
maximization
2.1.2 Does profit maximization lead to the highest possible 4
share price?
2.2 Maximize shareholder wealth 5
2.2.1 Two important issues of wealth maximization 5
2.2.2 Favorable and unfavorable arguments for wealth 6
maximization
2.3 Difference between profit maximization and wealth 7
maximization
2.4 Goal of the business firm:wealth maximization 8
2.5 The role of ethics 8
2.5.1 Ethics and share price 8
2.6 Agency issue 9
Chapter 3 : Conclusion 10

References 11