Forum 3

Is profit maximization the ultimate aim of business enterprise to survive?. Justify your
answer and cite concrete evidence to support your answer.

The ultimate objective of every business is to provide your primary target audience with
desired services and solutions to concerns. Profit optimization is based on operations to
guarantee that your core aim is achieved effectively and smoothly. When companies
make profit maximization their primary objective, it can lead to workers' discriminatory
practices towards the consumer. Maximizing profit is an unsuitable objective, because
short-term profit is made more focused than maximizing profit in line with the
maximization of wealth by shareholders.

Profit is a broad concept that gives each individual a diverse sense. The term profit, for
instance, might imply long-term profit or short-term profit, income before tax or profits,
gross profit or profit before tax, profit per share, return on equity, and so on. If profits are
maximized as an objective of the company, then decisions will be confused. The quality
of the advantages is ignored. The quality of benefit refers to the level of confidence with
which the financial course of action may anticipate future advantages. If they are
unclear or change, the quality of the projected benefits is considered to be weaker. The
maximizing of profit takes into account only the overall profit amount and not the quality.
It overlooks money's economic value. Benefits received in earlier periods are more
valuable than those received in later periods. However, the profit maximization goal
ignores this fundamental truth that the benefits received earlier are more valuable than
those that are received later because the earlier benefits can be reinvested to earn a
return.