Question

If managers are making decisions to maximize shareholder wealth, then they are primarily concerned with making decisions that should:

Answer 1

Explanation:

Make effective business decisions, the financial manager should have a single-valued

Thus, we advocate the maximization of shareholder wealth as the focus on economic profit, rather than accounting profit.

Answer 2

Answer:

If managers are making decisions to maximize shareholder wealth, then they are primarily concerned with making decisions that should: ... Profit maximization is not an adequate goal of the firm when making financial decisions because: A) it does not necessarily reflect shareholder wealth maximization.