Question

In: Finance

We have discussed that the main goal in management decision making for the firm should be to:


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

Solutions

Expert Solution

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.


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