Which ONE of the following statements about the goal of the firm is true?

Question

Quizplus · Accepted Answer

A) While stockholder value maximization is a common goal in traditional Anglo-American corporate governance, it is not universally accepted as the sole purpose of a firm, especially in countries with different cultural and institutional contexts such as India.

B) Firms in Germany often prioritize the long-term interests of multiple stakeholders, including employees, customers, and the community, rather than solely emphasizing stockholder value. Corporate social responsibility and sustainability are also important factors for German companies.

C) Japanese firms are often associated with the keiretsu system, which is a group of businesses with interlocking relationships and mutual support. While the goal of achieving growth and profitability is still important, it is not necessarily the sole focus for Japanese business managers. Relationships based on trust and harmony, as well as maintaining a positive reputation, are also crucial.

Therefore, the best choice is D because all three statements reflect distinct goals and priorities for firms in different countries.

Which ONE of the Following Statements About the Goal of the Firm