Question by plenum222: What law, exactly, is it that requires corporations to maximize profits?
This topic comes up every once in a while in op-ed pages, business articles, social commentary, but there is never any citation of which law, where, or if it’s a Federal requirement for incorporation – whatever. Can anybody shed some light on this for me, and others, please?
Best answer:
Answer by Spock (rhp)
none.
of course, the shareholders have the right to change managers if they dislike the outcomes or for any or even no reason — including failure to make use of profit opportunities. ergo, managers try to take maximum prudent advantage of opportunities lest they lose their jobs [and deservedly so].
What do you think? Answer below!
Tags:Articles, corporations, exactly, Green, Living, maximize, Profits, requires
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