10) What is the most appropriate goal of the firm?
a) Share holder wealth maximization
b) Profit maximization c) Stake holder maximization
d) EPS maximization
Answers
The answer of the question is option a (Share holder wealth maximization
Answer:
Answer is Share holder wealth maximization
Explanation:
A company's principal purpose is supposed to be to maximize shareholder wealth. The financial manager is responsible for acting in the best interests of the company. Because common investors are the company's most significant stakeholders, the company must continue to operate. This purpose indicates that the finance manager can best serve business owners by recognizing items and services that add value to the company because the market wants and values what the company has to offer.
Firms should make a decision that will result in a long-term growth in stock value. A company's obligation to its shareholders and the environment should also be considered.
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