The ultimate financial goal of a corporation is to:
A)minimize stockholder risk.
B)maximize profit.
C)maximize the value of the corporation to the stockholders.
D)increase size of the firm.

Question

Quizplus · Accepted Answer

The ultimate financial goal of a corporation is to maximize the value of the corporation to the stockholders. While minimizing stockholder risk and increasing the size of the company are important goals, they are secondary to maximizing profit and value for the stockholders who have invested in the company.  A corporation can always grow in size, but ultimately the focus should be on creating value for its investors.

The Ultimate Financial Goal of a Corporation Is To