What is wealth maximization? Why is wealth maximisation preferred over profit maximisation.

Wealth maximization means of shareholder’s wealth. It is a combination of two words viz. wealth and maximization. A wealth of a shareholder maximizes when the net worth of company maximizes. Wealth maximization is the ability of a company to increase the market value of its common stock over time. The market value of the firm is based on many factors like their goodwill, sales, services, quality of products. It helps in evaluating the overall performance of the business organization. This helps in achieving maximum dividend. It aims at increasing the worth of the firm. For example : To measure the worth of a project , criteria like present value of its cash inflow and present value of cash outflow is taken . For the business it is not necessary that profit should be the only objective it may concentrate on ________ _______ ______ _________ ___ ________ ______ _______.
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