Wednesday, 5 October 2016

Alternative aims of firms


1. Profit Satisficing

  • This principal agent problem can be overcom
  • In many firms there is separation of ownership and control.

2. Sales maximisation
  • Increased market share increases monopoly power.
  • Managers prefer to work for bigger companies.

3. Growth maximisation
4. Long run profit maximisation.
5.environmental concerns


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