Find the best solutions to your problems with the help of IDNLearn.com's experts. Get accurate and detailed answers to your questions from our knowledgeable and dedicated community members.

why might profit maximisation be considered inappropriate by a firms stakeholders other than shareholders

Sagot :

Profit maximization is often considered inappropriate by a firms stakeholders (like the government or the company's employees) other than shareholders because stakeholders have more of an embedded, and oftentimes less-financial interest in the company than shareholders, who can invest in a company without really caring much about what the company does. Profit maximization usually involves risk, which can be riskier for the stakeholder than the shareholder.