The most appropriate goal of a firm depends on the industry. In very general terms, a firm is a business with a goal of making money. Another major goal of a firm could be to help people or benevolence of some sort.
The most appropriate goal of a firm depends on the industry. In very general terms, a firm is a business with a goal of making money. Another major goal of a firm could be to help people or benevolence of some sort.
In finance the appropriate firm goal in a capitalist society is to meet the various demands of the society. This is done by amassing wealth which will give power to the society.
Shareholder wealth maximization is considered to be a more appropriate goal for the firm than profit maximization
C) What is the goal of the firm? Discuss how to measure achievement of this goal?
C) What is the goal of the firm? Discuss how to measure achievement of this goal?
The Goals of a firm depends upon the nature of the business its doing. The goal of the firm show the path towards the ultimate destination,a firm without a goal is just like a boat in the ocean,and floating to no where
profit maximization &wealth maximization of shareholders.
A firm cannot survive with mere profit maximization, but must increase long-term security through investment and meeting shareholder expectations. This will increase their productive capacity for the furture as well as encourage the risky capital investment of the shareholders.
C the firm must determine an appropriate
The goal that should always motivate the action of a firm's financial manager is the uninterrupted financial health of the company.
The goal that should always motivate the action of a firm's financial manager is the uninterrupted financial health of the company.
The appropriate goal of a firm is typically to maximize shareholder wealth, which aligns the interests of owners and investors with the firm's long-term performance and sustainability. Alternative goals, such as profit maximization or sales growth, can be inappropriate as they may encourage short-term thinking, neglect stakeholder interests, or lead to unsustainable practices. Additionally, these alternative goals might overlook factors like social responsibility and environmental impact, which are increasingly important in today's business landscape. By focusing on shareholder wealth, firms can ensure balanced growth that considers various stakeholders while promoting overall economic health.