- This topic has 5 replies, 2 voices, and was last updated 4 months ago by
John Moffat.
John Moffat.-
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johnbriane
- Topics: 146
- Replies: 147
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dear sir i faced this problem when attempting the revision kit…
i wonder why maximizing market share is a non financial objective ..
John Moffat
- Topics: 57
- Replies: 49581
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Financial objectives for the company are objective that affect the financials reported by the company, such as an objective to increase the profit.
The market value of the shares is determined by the shareholders are although the company should take actions to try and increase the MV determined by the shareholders, the MV does not depend solely on financial factors under the control of the company.
johnbriane
- Topics: 146
- Replies: 147
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sir if maximizing market share is not an example of a financial objective then maximizing market share is an example of which element ?
thank you
John Moffat
- Topics: 57
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Sorry I misread you first post and thought you were referring to the market vale per share.
Maximising market share is not a financial objective because it is not measured in $’s. It is a non-financial objective.
johnbriane
- Topics: 146
- Replies: 147
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Oh ok sir
But in the YouTube they told me that market share = firms sales + total market salesHere’s the proof sir
Secondly how is a market share measured sir
John Moffat
- Topics: 57
- Replies: 49581
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Market share is indeed the companies sales as a % of the total market sales, and I have never said otherwise.
I certainly do not need any ‘proof’ and you must not post links to other websites on our website.
It is expressed as a % and is not expressed in $’s and therefore it is not a financial objective.
As to how it is measured, you have written yourself how it is measured. We divided the unit sales of the company by the unit sales in the market as a whole, and express it as a %.
johnbriane
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