How do the concepts of profit maximization and wealth maximization differ in terms of objective, risk, time horizon and sustainability? OR What are…

Particular Profit Maximization Wealth Maximisation Objective Large amount of profits. Highest market value of shares. Risk Ignores risk or uncertainty Recognises risk or certainty Time Horizon Emphasizes the short term gains. Emphasizes the long term gains. Sustainability Not sustainable in long term. Sustainability is low. Critical for the very existence of the business enterprise. Sustainability is high. OR (c) High Yield Bonds (or Junk Bonds): Junk Bond is a bond that is rated below investment grade by credit rating agencies. It has a low credit rating and a high risk of default. Because of the higher risk, investors are compensated with higher interest rates, which is why junk bonds are also called high-yield bonds.