In: Finance
We have discussed that the main goal in management decision making for the firm should be to:
minimize costs
maximize the value of the firm
maximize earnings
maximize the value of the preferred stock
maximize net income
Ans maximize the value of the firm
The main goal in mangement decision making for the firm should be to maximize the value of the firm. When the mangement maximize the value of the firm it results in increase in the wealth of the shareholders which is the ultimate purpose of the management.