To discuss: The goal of the firm, managers and employees.
A business organization wherein the members of the organization sells good or services is termed as a firm.
The major goal of the firm is the maximization of stock value. In order to maximize the stock value, the financial manager implements the necessary actions that result in the maximum gain without taking into the future consequences.
The main financial goal is to maximize the wealth of the firm’s owners. Here, the wealth specifies the value of the business. Therefore, the major goal of the managers, employees, and the firm is to maximize the wealth of the stockholders (firm’s owner).
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