Get The Objective Of Wealth Maximization Takes Into Account Mcq Background. The chances of risk in investment should be minimum possible. Both these objectives are well served by wealth maximization as a decision criterion for.

Be mindful that wealth maximization is different than profit maximization.

Profit maximization the main objective of financial discounted cash flow (dcf) techniques take account of this time value of money when appraising investments. Action which yields a positive net present value will maximize wealth and vice versa. Wealth maximization objective helps in increasing the market value of shares. In shareholder wealth maximization, it places priority before any other objective for the managers must take in account this while making decisions like expenditure so that in contributed to increase shareholder wealth maximization is impersonal by nature.