0
If all companies had ana objective of maximizing shareholderswealth would people overall tend to be better or worse?
Wiki User
∙ 6y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What are the objective of deregulation?
The main objective for deregulation thus is to increase the overall efficiency in the sector, which implies use of expertise to reduce shortcomings in technical, Managerial and overall operational fields. Ajemrena Fidelson Delta State Polythecnics, Ozoro 07060437091
When a firm is maximizing profit what else will it maximize?
When a firm maximizes its profit, it automatically maximizes its shareholder value. When both profit and the shareholder value increase, in course of time, the overall firm value will increase. All these would undoubtely increase its share price in the market as well.
Profit maximization is the basic objective of firm?
A firm's main objective should be to make decisions that maximize the value of the company for its owners, and as the owners of a company are its shareholders, the main financial objective should be 'the maximization of shareholder wealth'. Since shareholders receive their wealth through dividends and capital gains, shareholder wealth will be maximized by maximizing the value of dividends and capital gains that shareholders receive over time. Problems with the 'maximization of profits' objective: Firstly, there are quantitative difficulties associated with profit. Maximization of profits as a financial objective requires the profit to be defined and measured accurately, and that all the factors contributing to it are known and can be taken into account. It is very doubtful that this requirement can be met on a regular basis. E.g- If 5 auditors go into the same company, it is very likely that each will come out with a completely different profit figure. A second problem concerns the timescale over which the profit should be maximized. Should profit be maximized in the short term or the long term?? Given that profit considers one year at a time, the focus is likely to be on short-term profit maximization at the expense of long-term investment, putting the long term survival of the company into doubt. There are many examples of companies going into liquidation shortly after declaring high profits. Check out - Polly Peck Plc's dramatic failure in 1990! (good example) The third problem is that profit does not take account of or make any allowance for risk! It would be inappropriate to concentrate efforts on maximizing accounting profit when this objective does not consider one of the key determinants of shareholder wealth. So the 'maximization of profit' is not a suitable core objective for a company. That is not to say that a company does not need to pay attention to its profit figures, since falling profits of profit warnings are taken by the financial markets as a sign of financial weakness. Instead these sort of profit targets/objectives should can serve a useful purpose in helping a company to achieve short-term or operational objectives within its overall strategic plan.
An investor who owns stocks in many different companies would most likely see a rise in the overall value of her portfolio during a?
A bull market
What is index in stock exchange?
The index in a stock exchange refers to the indicator of the overall performance of the exchange. Usually a number of large conglomerates that are listed in the exchange are chosen for the calculation of the Index. For Ex: The Sensex (Bombay Stock Exchange) comprise of 30 of the top companies in India. Each of these 30 companies has a weightage in the index and the price movement of these companies in either direction can influence the index.
If all companies had an objective of maximizing shareholder wealth would people overall tend to be better or worse off?
If all companies had an objective of maximizing shareholder wealth would people overall tend to be better or worse off?
What is the overall objective of NGO's?
dalit ngo objective
Which SMART objective related overall mission of your business?
Relevant
Which smart objective relates to overall mission to your business?
Relevant
What are the objective of deregulation?
The main objective for deregulation thus is to increase the overall efficiency in the sector, which implies use of expertise to reduce shortcomings in technical, Managerial and overall operational fields. Ajemrena Fidelson Delta State Polythecnics, Ozoro 07060437091
What was the overall objective of uranium extraction chemistry?
Obtaining pure uranium and compounds for industrial and military applications.
What is an strategical objective?
a strategic objective is an objective that is in alignment with the overall strategic direction of the organisation which is in turn in line with it's mission and vision. Objectives should always be SMART which means Specific Measurable Achievable Realistic Timely or time constrained.
What is the primary objective of the Philippine electrical code?
As with every electrical code around the world, the primary objective is the safe installation of electrical equipment that is connected to the electrical grid. Overall the objective is keeping everyone and everything safe in conjunction with the use of an electrical supply source.
A joint task force (JTF) is established when the mission?
has a specific limited objective and does not require overall centralized control of logistics
What does a safety insecter do?
Inspects schools or companies on there safety procedures and overall sfety
Any company in Romania for overall transportation?
Of coarse, many companies exist.
What can you put for the objective for a Beowulf resume?
Objective: To leverage my strong analytical and problem-solving skills to contribute to the success of the team at Beowulf by delivering high-quality technical solutions and enhancing the overall performance of the organization.
