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From a theoretical point of view, the ultimate objective of any manager should be to maximise shareholder wealth.
Explain the rationare for selecting shareholder wealth maximization as the objective of the firm.Include a consideration of profit maximization as an alternative goal
to intitutionalyze the principles of good corporate governance in the entire organizations
To put the corporate money into the best place which can generate long term- profit of the corporation.
Maximizing shareholder wealth and maximizing profit goes hand in hand. A firm maximizes shareholder wealth by investing in projects that will increase profits and the cash flows of the firm, finding ways to prudently cut variable and fixed operating costs and creating products that will increase revenues. The firm's executives must also manage the company and its operations in a fiscally responsible manner in order to increase the profitability of the company. By taking these steps the firm therefore increases the shares of its stocks which increases shareholder wealth.
From a theoretical point of view, the ultimate objective of any manager should be to maximise shareholder wealth.
If all companies had an objective of maximizing shareholder wealth would people overall tend to be better or worse off?
If the company is public listed (trades in the stock market) their aim is shareholder wealth maximization whereas for a privately owned firm a profit maximization objective is appropriate.
Explain the rationare for selecting shareholder wealth maximization as the objective of the firm.Include a consideration of profit maximization as an alternative goal
Corporate tax is important, as it gives the government revenues with an objective of helping its citizens.
The objective of physics is to understand the fundamental nature of the universe in which we live.
To make money by selling energy drinks
The primary objective of a firm is to maximize profit and shareholder value while meeting the needs of its customers and stakeholders, and operating in a sustainable and ethical manner. This involves making strategic decisions that optimize resources and generate long-term growth and success.
to intitutionalyze the principles of good corporate governance in the entire organizations
Justify and criticise the usual assumption made in finance literature, that the objective of a company is to maximise the wealth of its shareholders
To put the corporate money into the best place which can generate long term- profit of the corporation.
The magnification of a telescope M is the the focal length of the objective Fo over the focal length of the eyepiece Fe so increasing the focal length of the objective increases the magnification. The magnification of a microscope M is approximately tube length L/Fo x 25/Fe. Therefore increasing the focal length of the objective reduces the magnification.