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Chapter 1

For-profit entities

4.1 Introduction to for-profit entities

The primary objective of a for-profit entity is the maximisation of
shareholder wealth.

However, a for-profit entity may have a large number of financial and non-financial
objectives.

4.2 Financial objectives of for-profit entities

A for-profit entity’s financial objectives will be set to satisfy the shareholders and the
other finance providers.

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