Primary Goal of The Corporation
What is the primary goal of the corporation?
Maximize Wealth – should be the primary goal of the financial manager. Unlike profit (earnings per share, EPS) maximization, wealth maximization considers the impact of current decisions on the long-term financial health of the firm.
Social Responsibility – firms should be socially responsible at the same time they earn “normal” profits; otherwise they probably will go out of business.
Wealth Maximization and Social Responsibility – actions that maximize the value of the firm also are beneficial to society; wealth maximization improves the standard of living
also, encourage external resources for your posts, and please be sure to cite them properly
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