Question

Corporate wealth maximization is the value maximization for___

Answer 1

Explanation:

Shareholders wealth maximization criterion proposes that a business concern should only consider the decisions that maximize the market value of the share or the shareholders' wealth. ... When the firm maximizes the shareholders' wealth, the individual shareholder can use this wealth to maximize his individual utility.

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Answer 2

Answer:

Corporate wealth maximization is the value maximization for Stakeholders.

Explanation:

• Wealth maximization is the long term objective of the company to increase the value of the stock of the company thereby increasing shareholders wealth to attain the leadership position in the market
• When business managers try to maximize the wealth of their firm, they are actually trying to increase the company's stock price. As the stock price increases, the value of the firm increases, as well as the stakeholders wealth.