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17 October, 12:44

Why might profit maximisation be considered inappropriate by a firms stakeholders other than shareholders

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  1. 17 October, 13:25
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    Profit maximization is often considered inappropriate by a firms stakeholders (like the government or the company's employees) other than shareholders because stakeholders have more of an embedded, and oftentimes less-financial interest in the company than shareholders, who can invest in a company without really caring much about what the company does. Profit maximization usually involves risk, which can be riskier for the stakeholder than the shareholder.
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