ARTICLE · 25 NOVEMBER 2022

Wealth Maximization vs. Profit Maximization: Definitions And Differences

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There are two primary objectives of every business and corporation. One bases its decisions entirely on the shareholders' interest, and the other focuses on company profits.

BelgiumCorporate/Commercial Law

Julia Vorontsova

There are two primary objectives of every business and corporation. One bases its decisions entirely on the shareholders' interest, and the other focuses on company profits. What are the key differences between wealth maximization vs. profit maximization?

Does one objective take precedence over the other?

Learn about the definition of wealth maximization and find out why most firms consider it their primary goal. Discover what profit maximization means and if it's an outdated concept in financial management.

Unearth what these strategies aim to achieve and whether they're different from each other. First, let's start by defining wealth maximization.

The Definition of Wealth Maximization

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