If anyone ask from me "What is the best definition of Profit Maximization?" I will say that it means trying to reach at highest profit level where risk can be controlled. We all know " More risk, more profit". So, definition of profit maximization also the conveys the idea of risk maximization. If we are doing best to earn highest profit at uncontrollable risk of loss of capital of business, we can't define this profit maximisation as best definition.
Profit maximization is optimum and balanced profit trend when we are keeping our bird eye on the profitability of business. At that time, we will see all risk where we are losing our capital. In company, capital represent the stakeholders equity, so, administration can just to increase profit by improving their employee's efficiency, productivity and cost reduction techniques.
We also maximize our profits by application of resources to a unique set of coordinated activities, with a defined start and finish, undertaken to meet specific objectives within defined cost and performance parameters.
Profit maximization is optimum and balanced profit trend when we are keeping our bird eye on the profitability of business. At that time, we will see all risk where we are losing our capital. In company, capital represent the stakeholders equity, so, administration can just to increase profit by improving their employee's efficiency, productivity and cost reduction techniques.
We also maximize our profits by application of resources to a unique set of coordinated activities, with a defined start and finish, undertaken to meet specific objectives within defined cost and performance parameters.
