The traditional theorem of the maximization of profit has to be discarded.
To manage a business is to balance a variety of needs and goals. To emphasize only profit, misdirects managers to the point where they may endanger the survival of the business. To obtain profit today, they tend to undermine the future. They may push the most easily saleable product lines and slight those that are the market of tomorrow. They tend to short-change research, promotion, and other postponable investments. Above all, they shy away from any capital expenditure that may increase the investment capital base against which profits are measured; and the result is dangerous obsolescing of equipment. In other words, ...
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