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

Solutions

Expert Solution

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

jeff jeffy answered 1 year ago

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