Final answer:
Shareholder wealth maximization and profit maximization are two different objectives that a firm may pursue. Pursuing shareholder wealth maximization does not prevent the use of profit maximization decision-making rules.
Step-by-step explanation:
Shareholder wealth maximization and profit maximization are two different objectives that a firm may choose to pursue. Profit maximization focuses on maximizing the company's profits, while shareholder wealth maximization aims to increase the value of the shareholders' investment in the company.
While these two objectives may seem similar, they can lead to different decision-making rules. If a firm chooses to pursue the objective of shareholder wealth maximization, it does not necessarily prevent the use of profit maximization decision-making rules. The firm may still consider profitability as an important factor, but it would also take into account other factors that contribute to increasing shareholder value, such as customer satisfaction, long-term growth prospects, and corporate social responsibility.