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Advantages of profit maximization​
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44 votes
44 votes
Advantages of profit maximization​

User Harry Blue
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2 Answers

14 votes
14 votes

Answer:

Improved ratios will enhance investor's confidence and therefore share price.

Access to a wider range of finance because of a better image to creditors.

Long-term profits will improve liquidity and cash flows, which can be used for future investments, dividends, loan payments or retained.

User Osman Mazinov
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29 votes
29 votes
Profit can be used to pay higher wages to owners and workers. ...
Profit can be used to invest in research & development. ...
Profit enables the firm to build up savings, which could help the firm survive an economic downturn.
User Esteban S
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