Definition

Profit maximization

 Profit maximization means to increase profit of the firm.

According to Weston and Brigham,” The maximization of the firm’s net income is called profits maximization.”

According to Khan and Jain,” According to this approach, action that increase profit should be undertaken and those that decrease profits are to be avoided. In specific operational term, as applicable to financial management, the profit maximization criterion implies that the investment financing and dividend policy decisions of a firm should be oriented to the maximization profit.”

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