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profit maximization
The presumed goal of firms. In practice, business people often trade off making as much profit as possible against other goals, such as building business empires, being popular with staff and enjoying life. The growing popularity in recent years of paying bosses with shares in their firm may have reduced the agency costs that arise because they are the hired hands of shareholders, making them more likely to pursue profit maximization.
- Part of Speech: noun
- Industry/Domain: Economy
- Category: Economics
- Company: The Economist
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- summer.l
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