A primary aim of corporate management should be to:

Question

Quizplus · Accepted Answer

Maximising shareholders' wealth is the primary aim of corporate management. This involves not only focusing on short-term profits but also making decisions that will result in sustained long-term success and growth for the company, ultimately increasing the value of the shareholders' investments. A focus on profit maximisation alone may lead to short-term gains, but may not necessarily lead to long-term success and the maximisation of shareholders' wealth. Minimising costs is also important, but it should be balanced with the goal of maximising shareholders' wealth. Maximising the number of shareholders is not the primary aim, but rather a potential outcome of successfully maximising shareholders' wealth.

A Primary Aim of Corporate Management Should Be To