Profit maximization means striving for profits that are satisfactory to the stockholders and management-in other words,a level of profits consistent with the level of risk an organization faces.

Question

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Profit maximization typically refers to the process of increasing a company's profits to the highest possible level, without necessarily considering the satisfaction of stockholders or the level of risk.

Profit Maximization Means Striving for Profits That Are Satisfactory to the Stockholders