One of the main objectives of a business organization is profit maximization though there are other objectives like service to society, nation's development, providing employment opportunities etc. Are there any argument

Answer 6A(iv) Profit maximization objectives have been criticized on innumerable grounds. Under the changed economic and corporate environment, profit-maximization is regarded as unrealistic, difficult, and inappropriate and socially not much liked goal for business organizations. Profit maximization as an objective of financial management has been considered inadequate and rejected because of the following drawbacks. It is vague conceptually. It ignores timing of returns. It ignores the risk factor. It may tempt to make such decisions which may in the long run prove disastrous. Its emphasis is generally on short run projects. It may cause decreasing share prices. The profit is only one of the many objectives and variables that a firm considers.