Discuss the view that profit maximisation is the overriding objectives of all limited liability companies
             One would argue that profit maximisation is the most important objective of all. This is because without making profit there is no chance that the company will be able to survive, due to inability to cover its costs.
             The view that profit maximisation is the sole objective fits more with smaller operations under direct control of the owner than with larger operations who might be equally concerned with other objectives such as: market share or growth.
             FOR: Profit does however remain an important objective, because:
             · It ensures the long term survival of the business
             · It provides a source of finance for future investment
             · It provides rewards for stakeholders (dividends for shareholders, wage increases for employees, price reductions or improved products for the consumer, etc.)
             · It provides a measure of the efficiency and effectiveness of management policies
             · It allows comparison with other forms of investment
             Even if firms do not attempt to set marginal cost equal to marginal benefit, and even if they do not attempt to maximize profits, they may end up doing so. In an industry in which firms can enter easily, firms that have production and pricing decisions far from those needed for profit maximization probably will not survive long.
             There is an analogy here to the theory of evolution. Animals and plants that best find food sources and avoid predators will survive and reproduce. As a result, one can view the development of a species as a competition among genes. A gene that gives the organism containing it access to new food sources, better ways to exploit old food sources, or better ways to avoid predation is more likely to be passed on to the next generation (and thus survive) than those genes that are competing with it in the gene pool. It is not the intention of genes ...