Minor Project 1
Word Count: 803
Minor Project
Jessica Reyes
11/12/17
Busn 320
Financial Management
Dr. Brown
Regent University
Minor Project 2
The problem with a profit maximization goal is that it fails to take account of risk, the timing
of the benefits is not considered, and profit measurement is a very inexact process. “An activity
improving total stakeholder benefits, but which is not profitable from a narrow short run profit-
maximization point of view, may turn out to be profitable in the long run for the company when
it considers the value of its reputation and the commitment of different stakeholders (Mygind,
2009).” The goal of shareholders wealth maximization implies that the firm will attempt to
achieve the highest possible total valuation in the marketplace. It is the one overriding objective
of the firm and should influence every decision. “No one can serve two masters. Either he will
hate the one and love the other, or he will be devoted to the one and despise the other. You
cannot serve both God and Money (Matthew 6:24, NIV).
Insider trading occurs when anyone with non-public information buys and sells securities to
