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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.

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Nestor Heller

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2y ago

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What is the most appropriate goal of a firm?

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.


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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.


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Goal of the firm?

profit maximization &wealth maximization of shareholders.


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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.