In: Finance
A major advantage of using the maximization of shareholder
wealth as the primary goal of the firm is that this goal
considers
the timing and the risk of the expected benefits to be
received
the investor's consumption utility
the value of closely held partnerships
all the above
The major advantage of maximization is that it considers wealth
maximization. Wealth is maximized when the cash flows are
discounted for the time period in which theya re received. Teh
higher the prersent value, more is the wealth maximization.
hence first option is correct
Investors consumption utility will not maximize wealth
the value of closely held partnerships cannot be accurately
quantified