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Does sponsorship contradict maximisation of shareholders wealth?
Wiki User
∙ 14y ago
Not really.
Donations would help build the image of the business as a socially responsible corporate and would raise its goodwill. This would enable it to earn more profits in the future and, thus, actually increase shareholder's wealth.
Wiki User
∙ 14y ago
Wiki User
∙ 14y agoWhile it is easy to see why you might think this, theoretically a sponsorship should be useful as an advertisement. Furthermore, if the sponsorship is of a nonprofit such as a scholarship or an AYSO team, the sponsorship could be tax deductible, thereby having no effect on income.
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What do you mean by shareholders wealth maximisation?
analysis of shareholder wealth maximisation
Will profit maximisation necessarily lead to wealth maximisation?
Assuming that you understand what is maximisation, the the question is left only with two words, profit and value.Profit = Incomes - Expenses, while value is simply the relative worth (in monetary or...analysis of shareholder wealth maximization.While it is easy to see why you might think this, theoretically a sponsorship should be useful as an advertisement. Furthermore, if the sponsorship is of a nonprofit such as a scholarship or an AYSO..
What do you mean by wealth maximisation?
analysis of shareholder wealth maximisation
What is a wealth maximisation?
Wealth maximization is a financial investment management tool that helps businesses increase profits and net worth. In addition, company shareholders are able to receive a higher return from their investment.
What are the similarities between profit maximisation objectives and wealth maximisation objectives?
Both profit maximization and wealth maximization have the objective of increasing the net worth.
Wealth maximization is a function of share price maximization discuss?
the difference between Profit maximisation and share price maximisation
How a financial manager can maximize the wealth of shareholders?
effects of donations and sponsership on maxsimising shareholders wealth?
What is the difference between shareholder wealth maximisation and stakeholder wealth maximisation?
Shareholder and stakeholder in a company are the investors and company assets holder respectively. So the wealth maximization in both cases is nothing but increase in the share value for shareholder and company profitability for stakeholder.
Shareholders wealth is measured by the current?
how is wealth measured?
Does dividends have an impact on shareholders wealth?
Getting dividends increases your wealth.
What are the issues addressed in consideration of earning management and what is their relevance in pursuing shareholders wealth?
What are the issues addressed in consideration of earning management and what is their relevance in pursuing shareholders wealth?" What are the issues addressed in consideration of earning management and what is their relevance in pursuing shareholders wealth?"
How does capital budgeting affect shareholders wealth?
since it is a long run investment, the ability of the firm to involve in effective planning affect the wealth of the shareholders
