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What is the most appropriate goal of the firm?
- AShareholder wealth maximization
- BProfit maximization
- CStakeholder maximization
- DEPS maximization
Correct answer: A
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Shareholder wealth maximization
Shareholder wealth maximization is the most appropriate goal of the firm. Wealth maximization is the concept of increasing the value of a business in order to increase the value of the shares held by stockholders.
Shareholder wealth maximization is the most appropriate goal of the firm. Wealth maximization is the concept of increasing the value of a business in order to increase the value of the shares held by stockholders.