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There are both negative and positive implications in striving for higher profit margins.
The decision makers of a firm are forced to weigh the likelihood of possible consequences verses potential gains from their decisions. Stockbrokers are a classic example of individuals who feel pressure to perform. They may be presented with the opportunity to purchase stock based on insider information. Although this would greatly increase their chances of making a profit, it is unethical and should be avoided at all costs.
There are also positive implications with attempting to maximize shareholders' equity...
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