The goal of the firm is? Maximize Retained Earnings Minimize Risk Maximize Shareholders wealth Maximize Net...

The goal of the firm is?

Maximize Retained Earnings
Minimize Risk
Maximize Shareholders wealth
Maximize Net income

Expert Solution

Answer is Option c) Maximize shareholder wealth

Maximizing shareholder value is the idea that firms should operate in a manner in which shares will reflect higher expected future values. Basically, businesses should be run to make their business as attractive as possible to current AND future potential shareholders.

jeff jeffy answered 2 years ago

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