20+ Definition Of Wealth Maximization In Financial Management Background. Spectacular deals are right here on udemy. Wealth maximization is a modern approach to financial management.

Generally accepted accounting principles (as discussed in chapter) result in literally hundreds of definitions of profit for a firm because of the latitude permitted in recognizing and accounting for costs and revenues.

Examples include strategies toward value maximization and tax minimization, choosing the right incentive plan(s) that will properly motivate, retain and reward key talent, restructuring the balance sheet and delegating responsibility over to key management. It is a true indicator of the company's progress and the shareholder's wealth. Profit maximization is considered as the goal of financial management. Maximization of profit used to be the main aim of a business and financial management till the concept of wealth maximization came into being.