Question

How are small Business different from large firms in terms of shareholders wealth maximazation?​

Answer 1

Answer:

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Explanation:

wszchjjnbbgcxzxbnniutrwwazz

Answer 2

Answer:

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The difference between firm value maximization and shareholder maximization

Sᴛᴏᴄᴋ ᴘʀɪᴄᴇ ᴍᴀxɪᴍɪᴢᴀᴛɪᴏɴ ɪs ᴛʜᴇ ᴍᴏsᴛ ʀᴇsᴛʀɪᴄᴛɪᴠᴇ ᴏғ ᴛʜᴇ ᴛʜʀᴇᴇ ᴏʙᴊᴇᴄᴛɪᴠᴇ ғᴜɴᴄᴛɪᴏɴs. Iᴛ ʀᴇϙᴜɪʀᴇs ᴛʜᴀᴛ ᴍᴀɴᴀɢᴇʀs ᴛʜᴀᴛ ᴍᴀɴᴀɢᴇʀs ᴛᴀᴋᴇ ᴅᴇᴄɪsɪᴏɴs ᴛʜᴀᴛ ᴍᴀxɪᴍɪᴢᴇ sᴛᴏᴄᴋʜᴏʟᴅᴇʀ ᴡᴇᴀʟᴛʜ, ᴛʜᴀᴛ ʙᴏɴᴅʜᴏʟᴅᴇʀs ʙᴇ ғᴜʟʟʏ ᴘʀᴏᴛᴇᴄᴛᴇᴅ ғʀᴏᴍ ᴇxᴘʀᴏᴘʀɪᴀᴛɪᴏɴ, ᴛʜᴀᴛ ᴍᴀʀᴋᴇᴛs ʙᴇ ᴇғғɪᴄɪᴇɴᴛ ᴀɴᴅ ᴛʜᴀᴛ sᴏᴄɪᴀʟ ᴄᴏsᴛs ʙᴇ ɴᴇɢʟɪɢɪʙʟᴇ.

Sᴛᴏᴄᴋʜᴏʟᴅᴇʀ ᴡᴇᴀʟᴛʜ ᴍᴀxɪᴍɪᴢᴀᴛɪᴏɴ ɪs sʟɪɢʜᴛʟʏ ʟᴇss ʀᴇsᴛʀɪᴄᴛɪᴠᴇ, sɪɴᴄᴇ ɪᴛ ᴅᴏᴇs ɴᴏᴛ ʀᴇϙᴜɪʀᴇ ᴛʜᴀᴛ ᴍᴀʀᴋᴇᴛs ʙᴇ ᴇғғɪᴄɪᴇɴᴛ. Fɪʀᴍ ᴠᴀʟᴜᴇ ᴍᴀxɪᴍɪᴢᴀᴛɪᴏɴ ɪs ᴛʜᴇ ʟᴇᴀsᴛ ʀᴇsᴛʀɪᴄᴛɪᴠᴇ, sɪɴᴄᴇ ɪᴛ ᴅᴏᴇs ɴᴏᴛ ʀᴇϙᴜɪʀᴇ ᴛʜᴀᴛ ʙᴏɴᴅʜᴏʟᴅᴇʀs ʙᴇ ᴘʀᴏᴛᴇᴄᴛ ғʀᴏᴍ ᴇxᴘʀᴏᴘʀɪᴀᴛɪᴏɴ.

Tʜᴜs, ᴡʜᴇɴ ᴡᴇ ᴍᴀᴋᴇ ᴛʜᴇ ᴀʀɢᴜᴍᴇɴᴛ ᴛʜᴀᴛ ᴀɴ ᴀᴄᴛɪᴏɴ ʙʏ ᴀ ғɪʀᴍ (sᴜᴄʜ ᴀs ɪɴᴠᴇsᴛɪɴɢ ᴏʀ ғɪɴᴀɴᴄɪɴɢ) ɪɴᴄʀᴇᴀsᴇ ғɪʀᴍ ᴠᴀʟᴇ,ᴛʜɪs ɪɴᴄʀᴇᴀsᴇ ɪɴ ғɪʀᴍ ᴠᴀʟᴜᴇ ᴡɪʟʟ ɴᴇᴄᴇssᴀʀɪʟʏ ᴛʀᴀɴsʟᴀᴛᴇ ɪɴᴛᴏ ɪɴᴄʀᴇᴀsɪɴɢ sᴛᴏᴄᴋʜᴏʟᴅᴇʀ ᴡᴇᴀʟᴛʜ ᴀɴᴅ sᴛᴏᴄᴋ ᴘʀɪᴄᴇ ᴏɴʟʏ ɪғ ᴛʜᴇ ᴍᴏʀᴇ ʀᴇsᴛʀɪᴄᴛɪᴠᴇ ᴀssᴜᴍᴘᴛɪᴏɴs ʜᴏʟᴅ. Cᴏɴᴠᴇʀsᴇʟʏ,ᴀɴ ᴀᴄᴛɪᴏɴ ᴛʜᴀᴛ sᴛᴏᴄᴋ ᴘʀɪᴄᴇ ɪɴ ᴀ ᴡᴏʀʟᴅ ᴡʜᴇʀᴇ ᴛʜᴇ ʟᴇss ʀᴇsᴛʀɪᴄᴛɪᴠᴇ ᴀssᴜᴍᴘᴛɪᴏɴs ᴅᴏ ɴᴏᴛ ʜᴏʟᴅ ᴍᴀʏ ɴᴏᴛ ɴᴇᴄᴇssᴀʀɪʟʏ ɪɴᴄʀᴇᴀsᴇ ғɪʀᴍ ᴠᴀʟᴜᴇ.