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Why profit maximization is not an appropriate goal of the firm?

Answer:

I'd like to start off by saying that the question is grammatically incorrect. If the question were "Why is profit maximization not an appropriate goal of the firm?" then my answer would most likely be centred around the fact that a firm cannot survive with mere profit maximisation, but must increase long-term security through investment and meeting shareholder expectations. This will increase their productive capacity for the furture as well as encourage the risky capital investment of the shareholders. If your question was 'Why is profit maximisation not the most important goal of the firm?" I would have to disagree with you, as it is the forerunner goal of nearly every term, excluding gov. firms, Australian banks and charities.

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