It creates some unnecessary opinion regarding earning habits of the business concern. In Profit Maximization, profit is not defined precisely or correctly.Some of the drawbacks of profit maximizations are It also creates inequalities among the stake holders such as customers, suppliers, public shareholders, etc. It also creates immoral practices such as corrupt practice, unfair trade practice, etc. Some of the unfavorable arguments of profit maximizations are that it leads to exploiting workers and consumers.

In this criteria profit is the main source of finance and profitability meets the social needs. In this criteria Profit is the main parameter of business operation. and hence Profit maximization objectives help to reduce the risk of the business. So it shows the entire position of the business concern. Profit is the parameter of measuring the efficiency of the business concern. The Ultimate aim of the business concern is earning profit, hence, it considers all the possible ways to increase the profitability of the concern.

It is the traditional and narrow approach, which aims at, maximizes the profit of the concern. The second way is an operational concept i.e. In this concept it refers to the amount and share of national Income that is paid to the owners of business. In one sense it is used as an owner oriented. In this approach actions that increase the profits should be undertaken and the actions that decrease the profits are avoided. Profit maximization: Profit maximization is considered as the goal of financial management. The two widely used approaches are Profit Maximization and Wealth maximization. The objective of a Financial Management is to design a method of operating the Internal Investment and financing of a firm.

Shareholder wealth maximization means