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What is the goal of financial management?

To Maximize shareholder wealth.


What is a shareholder for a company?

A shareholder is a person who owns share(s) in a company shareholder is sometime referred to as a share owner.


Why do we assume that the goal of a private-sector organisation is to maximise shareholder wealth?

We assume that the goal of a private-sector organization is to maximize shareholder wealth because shareholders are the owners of the company and expect a return on their investment. This focus on profit maximization aligns with the principles of capitalism, where companies are incentivized to operate efficiently and drive growth. Additionally, many management theories, such as agency theory, suggest that executives are motivated to prioritize shareholder interests to ensure job security and performance-based compensation. Ultimately, maximizing shareholder wealth is seen as a fundamental measure of a company's success and sustainability.


What is the difference between a bondholder and a shareholder?

A bondholder is a creditor to a company whereas a shareholder is a owner of a company.


Why shareholder wealth maximization is preferd over other goals?

Shareholder wealth maximization is preferred because it aligns the interests of management with those of the owners, ensuring that decisions are made to enhance the overall value of the company. This focus encourages efficient resource allocation, driving profitability and long-term growth. Additionally, prioritizing shareholder wealth provides clarity in performance measurement and accountability, which can lead to better strategic planning and investment decisions. Ultimately, a strong emphasis on maximizing shareholder value can contribute to broader economic growth and stability.

Related Questions

Who is the major shareholder of target?

Capital Research and Management Company...with a huge 14% interest in the company Capital Research and Management Company...with a huge 14% interest in the company


What are the sole objectives of shareholder in a business?

The sole objectives of the shareholders of the company is to guide/motivate the co. to initiate measures that will help them to accelerate business activity vis a vis expansion and/or switching over to new activities.Though shareholders expect declaration about hefty dividends, they should rather act as watchdogs to protect their interests and company's interest as well.


What is the goal of financial management?

To Maximize shareholder wealth.


Is coca cola a shareholder of any company?

a shareholder of what company?


Who can be a shareholder of a company?

Any individual can be a shareholder of another company. A shareholder is any person or other company which owns at least one stock or share of a company.


What is a shareholder for a company?

A shareholder is a person who owns share(s) in a company shareholder is sometime referred to as a share owner.


Which company give right share to his shareholder?

which company give rightshare to his shareholder


Why do we assume that the goal of a private-sector organisation is to maximise shareholder wealth?

We assume that the goal of a private-sector organization is to maximize shareholder wealth because shareholders are the owners of the company and expect a return on their investment. This focus on profit maximization aligns with the principles of capitalism, where companies are incentivized to operate efficiently and drive growth. Additionally, many management theories, such as agency theory, suggest that executives are motivated to prioritize shareholder interests to ensure job security and performance-based compensation. Ultimately, maximizing shareholder wealth is seen as a fundamental measure of a company's success and sustainability.


What is the abbreviation for shareholder company?

abbreviate Shareholder


American management style?

There are many types of management styles in American companies including Management by Objectives. The way a company manages their employees is generally dictated by the company's culture.


What statements about company objectives is true?

Which of the following statements about company objectives is true?A. Company objectives should be stated in vague terms to provide flexibility to lower-level managers.B. Company objectives should be set by top management with no input from marketing managers.C. A good mission statement can substitute for more specific company objectives.D. Company objectives should be compatible with each other.E. All of these statements about company objectives are true.


What is the difference between a bondholder and a shareholder?

A bondholder is a creditor to a company whereas a shareholder is a owner of a company.