The ultimate financial goal of a corporation is to

Question

Quizplus · Accepted Answer

The ultimate financial goal of a corporation is to maximize the value of the corporation to its stockholders. In other words, it aims to increase the shareholder wealth by ensuring that the stock price increases over time. While maximizing profit is important, it is not the ultimate goal as decisions that may increase short-term profits may have long-term negative impacts on the value of the corporation to its shareholders. Therefore, choice (B) is not the best answer. Minimizing stockholder risk may be a goal, but it is not the ultimate goal as taking risks can lead to higher returns for shareholders. Lastly, increasing the size of the firm is a possible goal, but it is not the ultimate goal as bigger is not always better when it comes to a corporation's financial health.

The Ultimate Financial Goal of a Corporation Is to