Financial management

By MAJID KHAN Msc Finance Let’s break down the difference between Profit Maximization and Wealth Maximization in simple terms, then explain why Wealth Maximization is more important. 🧮 1. What is Profit Maximization? Goal: Earn the highest possible profit in the short term. 🔹 Characteristics: ✅ Example: A company cuts costs by using low-quality materials. […]

Money today is worth more than the same amount of money in the future. Let’s break this down simply and explain from multiple angles, along with an example. 💡 1. Basic Idea Why is money today worth more? ✅ $100 today > $100 a year from now 💰 2. Financial Example You have $1,000 today.