A firm subscribing to the ownership theory of the firm would mainly be concerned with providing value for its:
A) Shareholders.
B) Customers.
C) Board of Directors.
D) Community.

Question

Quizplus · Accepted Answer

The ownership theory of the firm states that the main purpose of a company is to maximize the value of the owners' (shareholders') investment. Therefore, a firm subscribing to this theory would primarily be focused on providing value for its shareholders. This is typically achieved through maximizing profits and share prices, paying out dividends, and making strategic business decisions that benefit the owners of the firm.

A Firm Subscribing to the Ownership Theory of the Firm