What role does external forces play in their ability to max. shareholders funds … competitors

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Shareholders wealth maximization is foremost objective bof financial management and there are several factors both internal and external which affects the shareholders wealth.External factors does not affect directly in wealth maximization but they have impact on the shareholders wealth like government policies and taxes, competitors of the firm etc.

Competitive environment directly affects the achievement of the financial obejectives like wealth maximization.If the share of competitor increases in the market then it becomes essential for the company to minimise its cost in order to survive as the competitor become more efficient in its operation thus it's affects our obejective i.e maximization of shareholders wealth.

jeff jeffy answered 1 year ago

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