Wealth maximization as the goal of the firm implies enhancing the wealth of
A) the federal government.
B) the firm's employees.
C) the Board of Directors.
D) the firm's stockholders.

Question

Quizplus · Accepted Answer

Wealth maximization as the goal of the firm implies enhancing the wealth of the firm's stockholders, who are the owners of the company. The main objective of the firm is to create value for its shareholders and maximize their wealth through profitable investments and efficient management of resources. The federal government, employees, and Board of Directors may benefit indirectly from the firm's success, but their interests are not the primary goal of the firm.

Wealth Maximization as the Goal of the Firm Implies Enhancing