In: Finance
What should be the goal of a corporation?
Select one:
A. Maximize profit
B. Maximize market share
C. Maximize management corporation
D. Minimize costs
E. Maximize the current value of the company's stock
The answer is
E. Maximise the current value of company’s stock
The primary goal of every corporation is to maximise the wealth of its shareholders
Wealth = Stock Price*Number of shares
Hence, the goal is to maximise the share price
Maximising profit, market share and earnings are all secondary goals