A major advantage of using the maximization of shareholder wealth as the primary goal of the firm is that this goal considers
A)the timing and the risk of the expected benefits to be received
B)the investor's consumption utility
C)the value of closely held partnerships
D)all the above

Question

Quizplus · Accepted Answer

Maximizing shareholder wealth takes into account both the timing and the risk of the expected benefits to be received, which is an important consideration for investors. The other options, such as consumption utility and closely held partnerships, are not directly related to the goal of maximizing shareholder wealth.

A Major Advantage of Using the Maximization of Shareholder Wealth