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.
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