Profit Maximization / Maximization of Shareholder Wealth
The primary goal of financial management regarding corporations should be to maximize shareholder wealth on the whole. If management was to only concentrate on profit maximization, they would more than likely run their corporations into the ground. The very existence and concept of a corporation is beneficial to business in numerous ways. First and foremost, corporate status helps release management from possible enourmous financial liability issues. Second, shareholders are the key of checks and balances in a corporation. …
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