Disadvantages of Profit Maximization?

Answer

Profit maximization is the focus of a company on their profits ahead of everything else. This means that they will use all of the resources they have to increase profits. This process sounds like a win-win situation, but it does come with some disadvantages, namely risk. Using this type of strategy causes some risks to the company. It is possible to lose all market value if the market takes a turn while all resources are set to creating a profit.
Q&A Related to "Disadvantages of Profit Maximization"
1. Go through the billing statements for your company or business and determine the total cost of operation you are paying under current conditions. Include all bills like rent and
http://www.ehow.com/how_8125575_calculate-maximize...
In most cases we find that business owners treat. profit as what is left over. after expenses are deducted from sales. There are no budgets or profit forecasting. There is no formula
http://wiki.answers.com/Q/What_is_the_profit_maxim...
1. Use descriptive key words in your listings to generate a higher number of views from potential buyers. This practice generates more views because buyers use different word combinations
http://www.wikihow.com/Maximize-Your-Profits-on-eB...
Sell one work more than once. This is becoming pretty popular. Think of, instead of creating a one time concept for a website, create a design framework, color it differently, and
http://www.quora.com/What-options-are-there-for-a-...
Explore this Topic
Profit maximization is the process that companies use to determine the best output and price levels in order to maximize their return. The factors needed to determine ...
Profit maximization is the process by which a business determines the price that returns the greatest profit. Profit can be increased by maximizing the difference ...
Profit maximization is an inappropriate goal because it leads to inflation and irregular distribution of wealth. It also makes one run the risk of losing employees ...
About -  Privacy -  Your Cookie Choices  -  Careers -  About P.G. Wodehouse -  Help -  Feedback  -  Sitemap  © 2014 IAC Search & Media