The primary goal of investor-owned firms is shareholder wealth maximization, while the primary goal of not-for-profit firms is typically stated in terms of some mission; for example, to provide health care services to the communities served.

Question

Quizplus · Accepted Answer

This statement is true. Investor-owned firms prioritize maximizing shareholder wealth, whereas not-for-profit firms have a mission to fulfill a specific purpose or serve a specific community.

The Primary Goal of Investor-Owned Firms Is Shareholder Wealth Maximization