The goal of shareholder wealth maximization
A)is not appropriate for non-U.S.business firms.
B)means that all business decisions and investments that a firm makes are done for the purpose of making the owners of the firm better off financially.
C)is a sub-objective the firm should attempt to achieve after the objective of customer satisfaction is met.
D)is in conflict with the privatization process taking place in third-world countries.

Question

Quizplus · Accepted Answer

Shareholder wealth maximization means that the primary objective of a firm is to increase the financial well-being of its shareholders. This objective is applicable to business firms worldwide and is considered the ultimate objective of a firm's decision-making process. Other objectives, such as customer satisfaction and social responsibility, are considered secondary to the goal of shareholder wealth maximization.

The Goal of Shareholder Wealth Maximization